AGL 38.44 Increased By ▲ 0.29 (0.76%)
AIRLINK 129.50 Increased By ▲ 4.43 (3.54%)
BOP 7.11 Increased By ▲ 0.26 (3.8%)
CNERGY 4.55 Increased By ▲ 0.10 (2.25%)
DCL 8.26 Increased By ▲ 0.35 (4.42%)
DFML 38.15 Increased By ▲ 0.81 (2.17%)
DGKC 79.66 Increased By ▲ 1.89 (2.43%)
FCCL 32.30 Increased By ▲ 1.72 (5.62%)
FFBL 72.50 Increased By ▲ 3.64 (5.29%)
FFL 12.18 Increased By ▲ 0.32 (2.7%)
HUBC 109.50 Increased By ▲ 5.00 (4.78%)
HUMNL 13.90 Increased By ▲ 0.41 (3.04%)
KEL 4.94 Increased By ▲ 0.29 (6.24%)
KOSM 7.45 Increased By ▲ 0.28 (3.91%)
MLCF 37.40 Increased By ▲ 0.96 (2.63%)
NBP 69.67 Increased By ▲ 3.75 (5.69%)
OGDC 188.30 Increased By ▲ 8.77 (4.88%)
PAEL 25.11 Increased By ▲ 0.68 (2.78%)
PIBTL 7.26 Increased By ▲ 0.11 (1.54%)
PPL 151.35 Increased By ▲ 7.65 (5.32%)
PRL 25.00 Increased By ▲ 0.68 (2.8%)
PTC 17.15 Increased By ▲ 0.75 (4.57%)
SEARL 81.50 Increased By ▲ 2.93 (3.73%)
TELE 7.51 Increased By ▲ 0.29 (4.02%)
TOMCL 32.70 Increased By ▲ 0.73 (2.28%)
TPLP 8.49 Increased By ▲ 0.36 (4.43%)
TREET 16.54 Increased By ▲ 0.41 (2.54%)
TRG 56.20 Increased By ▲ 1.54 (2.82%)
UNITY 27.90 Increased By ▲ 0.40 (1.45%)
WTL 1.33 Increased By ▲ 0.04 (3.1%)
BR100 10,422 Increased By 332.3 (3.29%)
BR30 30,780 Increased By 1270.7 (4.31%)
KSE100 97,549 Increased By 2975.2 (3.15%)
KSE30 30,424 Increased By 979.6 (3.33%)

Industrialists have urged the State Bank of Pakistan (SBP) to include the current Letters of Credit (LCs) and already imported equipment, lying at ports, in the Temporary Economic Refinance Facility (TERF) scheme.

The SBP, on March 17, introduced TERF and its Shariah compliant version to stimulate new investment in manufacturing sector as the outbreak of COVID-19 has impacted the economic activity in the country.

TERF will be available for one year only, requiring a letter of credit (LC) to be opened by end-March 2021. Under this scheme, the SBP announced to refinance banks for financing at a maximum end-user rate of 7 percent for 10 years for setting up of new industrial units. The total size of the scheme is Rs 100 billion, with a maximum loan size per project of Rs 5 billion.

However, industrialists have asked for further clarification on this scheme. Bin Qasim Association of Trade & Industry (BQATI), represents the largest industries in the country, has written a letter to Governor SBP Dr. Reza Baqir and asked for further clarification regarding ongoing Expansion and BMR of existing facilities through already established LC.

According to BQATI most of the industries are heavily dependent on Chinese economy and Asian markets are facing stern financial crises during these times. The said hardships were amplified in upcoming months of COVID-19 lockdown in Pakistan.

Majority of shipments pertaining to plant and machinery of several members have been held in the bonded warehouse-of customs as the importing industries are unable to pay taxes and duties and accordingly clear these imported equipments due to financial crunch in wake of COVID-19.

Naveed Shakoor President BQATI said that the current economic scenario will not allow the most of industries to complete projects and the investment made so far with respect to BMR/expansion are also on the brink of becoming a sunk cost altogether if the remaining project investment are not restructured in accordance with the spirit of rehabilitation sought under the TERF scheme.

In view of the current scenario, he has urged the governor SBP to take some more extraordinary measure during this crisis and allow including the already established LCs and imported machinery in the TERF scheme to facilitate the industry.

"The ongoing projects, current LCs and equipment, which still has not been cleared due to COVID-19 pandemic, may also be included in the TERF scheme. He said that with the right policies nation will come out of this grave scenario successfully."

Copyright Business Recorder, 2020

Comments

Comments are closed.