Export Finance Mark-Up Rate Facility
Thursday, September 3, 2009
In pursuance of entry 7 of item 29A of Schedule II to the Rules of the Business, 1973, the Federal Government, is pleased to make the following Order that shall come into force from September 01, 2009.
a) Effective 1st September 2009 the Federal Government shall provide mark-up rate support of 2.5% to the exporters of Textile Industry on outstanding balances of principal amount of loans availed by the industry from commercial banks for export of eligible commodities under State Bank’s Export Finance Scheme (EFS).
b) The facility shall be administered by the commercial banks or DFIs. They will make the payment to the extent of mark-up rate support on the outstanding balance of EFS loans availed by the borrower of textiles sector and claim reimbursement from SBP.
c) It shall be paid by the commercial banks on six month basis in March and September each year subject to the release of necessary budgetary allocation by the Federal Government for relevant fiscal year.
d) The State Bank of Pakistan (SBP) shall reimburse the amount of mark-up rate support to commercial banks by debit to the appropriate Federal Government account to be intimated by Finance Division.
e) The units eligible for the facility shall furnish on line information to the Ministry of Textile Industry in the manner specified in Annexure I to this Order. Hard copy of the same will be submitted to the Ministry of Textile Industry after verification by the textiles associations concerned.
f) The units so registered will be provided with Special Identification Numbers to be used in all future communications will be eligible for the facility.
g) The registered units shall furnish data and any information related to the unit’s operations, domestic sales, accounts and exports as and when required by the Ministry of Textile Industry.
a) Effective 1st September 2009 the Federal Government shall provide mark-up rate support of 2.5% to the exporters of Textile Industry on outstanding balances of principal amount of loans availed by the industry from commercial banks for export of eligible commodities under State Bank’s Export Finance Scheme (EFS).
b) The facility shall be administered by the commercial banks or DFIs. They will make the payment to the extent of mark-up rate support on the outstanding balance of EFS loans availed by the borrower of textiles sector and claim reimbursement from SBP.
c) It shall be paid by the commercial banks on six month basis in March and September each year subject to the release of necessary budgetary allocation by the Federal Government for relevant fiscal year.
d) The State Bank of Pakistan (SBP) shall reimburse the amount of mark-up rate support to commercial banks by debit to the appropriate Federal Government account to be intimated by Finance Division.
e) The units eligible for the facility shall furnish on line information to the Ministry of Textile Industry in the manner specified in Annexure I to this Order. Hard copy of the same will be submitted to the Ministry of Textile Industry after verification by the textiles associations concerned.
f) The units so registered will be provided with Special Identification Numbers to be used in all future communications will be eligible for the facility.
g) The registered units shall furnish data and any information related to the unit’s operations, domestic sales, accounts and exports as and when required by the Ministry of Textile Industry.
Labels: Export Finance Scheme, LTFF, SBP, Textile
posted @ 1:14 PM,
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Mark-up Rate Support for Textile Sector
In pursuance of entry 7 of item 29A of Schedule II to the Rules of the Business, 1973, the Federal Government is pleased to make the following Order that shall come into force from September 01, 2009.
- Effective 1st September 2009 the Federal Government shall provide Mark-up Rate support on all outstanding running balances of principal amount of floating rate long terms loans availed by the textiles industry from commercial banks/Development Finance Institutions (DFIs), disbursed up to August 31, 2009, for financing import/purchase of textile machinery for which funds under State Bank’s Long Term Financing Facility (LTFF) have not been availed.
- The support will be admissible to the extent of 5% or the difference in mark- up rate between floating rate loan and LTFF rate, whichever is lower.
- The facility shall be administered by the commercial banks or DFIs. They will make the payment to the extent of mark-up rate support on the outstanding balance of loans availed by the borrower of textiles sector and claim reimbursement from SBP.
- It shall be paid by the commercial banks/DFIs on six month basis in March and September each year subject to release of necessary budgetary allocation by the Federal Government for relevant fiscal year.
- The State Bank of Pakistan (SBP) shall reimburse the amount due to commercial banks/DFIs by debit to the appropriate Federal Government account to be intimated by Finance Division.
- The units eligible for the facility shall furnish on line information to the Ministry of Textile Industry in the manner specified in Annexure I to this Order. Hard copy of the same will be submitted to the Ministry of Textile Industry after verification from the associations concerned.
- The units so registered will be provided with Special Identification Numbers to be used in all future communications will be eligible for the facility.
- The registered units shall furnish data and any information related to the unit’s operations, domestic sales, accounts and exports as and where required by the Ministry of Textile Industry.
posted @ 1:04 PM,
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Highlights of 5 Years National Textile Policy
Thursday, August 13, 2009
1- First-ever 5-year National Textile Policy
2- Export target set at $25 billion
3- Aims at increased production on sustainable basis
4- Rs40.000 Billion (Textile Investment Support Fund) for technology, standardization, value addition
5- Cotton value addition products to double in 5 years
6- Technology Up-gradation Fund to be established
7- Govt to pay 50pc mark-up on new investments
8- Rs.1.000 Billion for infrastructure uplift
Restructuring and reorganisation of the textile sector is on the cards which includes drawback of local taxes refund of past R and D claims and Magnetisation of PTA;
Key initiatives are creation of Textile Investment Support Fund (TISF); Technology Upgradation Fund (TUF); Infrastructure Development; Skill Development; Zero Rating of Exports; Tax free import of machinery and Rationalisation of Tariff structure;
The policy also envisages removing regulatory bottlenecks ie market access; marketing support, export house scheme, marketing insurance scheme and improving Information and communication technology;
The sub-sectors initiatives include Fibers, Ginning, Filament yarn, Shipping, Weaving and Knitting, non-woven, processing, home textiles, garments, fashion and design, technical textiles, handlooms and handicrafts, carpets;
The policy encompasses indigenization, women employment support programme, support for disabled, handicapped.
2- Export target set at $25 billion
3- Aims at increased production on sustainable basis
4- Rs40.000 Billion (Textile Investment Support Fund) for technology, standardization, value addition
5- Cotton value addition products to double in 5 years
6- Technology Up-gradation Fund to be established
7- Govt to pay 50pc mark-up on new investments
8- Rs.1.000 Billion for infrastructure uplift
Restructuring and reorganisation of the textile sector is on the cards which includes drawback of local taxes refund of past R and D claims and Magnetisation of PTA;
Key initiatives are creation of Textile Investment Support Fund (TISF); Technology Upgradation Fund (TUF); Infrastructure Development; Skill Development; Zero Rating of Exports; Tax free import of machinery and Rationalisation of Tariff structure;
The policy also envisages removing regulatory bottlenecks ie market access; marketing support, export house scheme, marketing insurance scheme and improving Information and communication technology;
The sub-sectors initiatives include Fibers, Ginning, Filament yarn, Shipping, Weaving and Knitting, non-woven, processing, home textiles, garments, fashion and design, technical textiles, handlooms and handicrafts, carpets;
The policy encompasses indigenization, women employment support programme, support for disabled, handicapped.
Labels: Economy and Business, Pakistan Economy, Textile
posted @ 10:25 AM,
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Proposed Textile Policy
Tuesday, June 2, 2009
A committee has been constituted to evaluate the proposed textile policy, envisaging specific initiatives. Some of the facts related to textile industry and salient features of the policy are as follows;
- Aim to achieve an export target of $25 billion and creating 2.9 million jobs over the next five years.
- Lay foundation for a prospective plan spread over the next 15 years under which the country would move at the higher end of world textile map by achieving a target of textile exports between $75 billion and $100 billion.
- Enlarging women's role in the textile sector.
- The exports of textile and clothing sector declined by 9.27 percent during July-April of the current fiscal year to $7.898 billion, against $8.706 billion of corresponding period of last year.
- More focus on research and development to increase supply of quality fibres and increase efficiency of downstream sector in line with domestic and international market requirements.
- To provide all possible incentives for modernising the textile industry and making it more efficient since it is a valuable asset of the country.
- Emphasis on focusing on areas and regions in the country through which optimum yield of cotton could be procured.
- Call for integrated textile value chain which could help towards adding value to the country's agriculture potential by serving domestic needs as well as high value export demand through a well planned industrial structure, product diversification and institutional framework.
- Aim at bolstering the sector in a big way by facilitating the sector to develop international and domestic-driven capabilities, development of state-of-the-art infrastructure facilities, comprehensive skill development framework to increase supply of efficient human resource, development of standards for international compliance, increasing productivity and improving quality.
Labels: Economy and Business, Pakistan Economy, Textile
posted @ 9:45 AM,
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Long Term Financing Facility (LTFF) for Second Hand Machinery
Thursday, March 12, 2009
State Bank of Pakistan has further ameneded LTFF Scheme vide SMEFD Circular Letter No. 03 of 2009. Salient features are
Second hand plant & machinery to be used in the eligible sectors / sub-sectors of LTFF Scheme shall also be eligible for financing under the Scheme subject to following terms & conditions;
- Only imported second hand machinery not more than three years old will qualify for financing under the Scheme.
- Second hand machinery purchased from local suppliers will not qualify under the Scheme.
- Further, fixed term loans extended by banks/DFIs against second hand imported machinery prior to the issuance of this circular will not be eligible for refinance.
- The useful life of such machinery should be more than the period of loan itself.
- The borrowers concerned should submit a report from PBA’s approved surveyors (acceptable to bank/DFI concerned) with regard to confirmation that machinery is in order and its useful life is more than the period of loan itself.
- Banks / DFIs can avail refinance for a maximum period of three years, to the extent of value of such machinery determined by the approved surveyor; or original cost less accumulated depreciation @ 10% p.a., which-ever is lower.
- LCs established from the date of this circular to December 31, 2009 shall be eligible for refinancing from SBP.
To see the circular click here!
posted @ 10:08 AM,
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