Refinancing for zigzag technology-based brick kilns allowed

The State Bank of Pakistan (SBP) has said that refinancing for establishment of zigzag technology-based brick kilns is allowed under the Refinance Facility for Modernization of Small and Medium Enterprises (SMEs). According to a SBP circular issued Tuesday, it has been observed that emissions from conventional brick kilns, most of which are located in or around urban and sub-urban settlements, are a major source of air pollution and smog.
The emission of carbon and other particulate matter can be significantly cut down by adoption of the new zigzag technology. It would also allow cost saving by cutting down on fuel consumption. In this respect, the SBP has clarified that refinance for purchase of plant and machinery for upgradation of existing conventional brick kilns and establishment of zigzag technology based brick kilns, being SMEs, is available under the scheme of Refinance Facility for SMEs.
As a further facilitation in line with the SBP's efforts to promote environmental considerations under green banking, refinance under the scheme shall also be available for carrying out civil works up to 20 percent of total project cost for conversion of conventional brick kiln and up to 50 percent of total project cost for establishment of a new zigzag technology based brick kiln.