The State Bank on Monday issued guidelines for infrastructure project financing, aiming to boost the economic growth and accelerate employment generation. "The State Bank formulated Draft Guidelines for Infrastructure Project Financing (IPF) for enabling the private sector participation and funding of infrastructure projects through the banking system and capital markets," said a circular issued by SBP.
These Draft Guidelines are aimed at helping the banks and development finance institutions (DFIs) to develop a system for financing of infrastructure projects.
The system would be developed essentially by evaluating the intrinsic cash flow generating ability of these projects on the basis of sectoral and sub-sectoral studies and other data regarding volume of expected use and future cash projections of infrastructure projects.
The SBP observed that the promotion and development of infrastructure projects is of critical importance for Pakistan's economic growth and employment generation in the country.
The Draft Guidelines for Infrastructure Project Financing (IPF) have been posted at SBP website.
The State Bank has invited feedback, suggestions and recommendations on these Draft Guidelines for Infrastructure Project Financing from all stakeholders, particularly bankers, financial institutions, Federation of Pakistan Chambers of Commerce & Industry (FPCCI), associations, businessmen and members of the general public. The suggestions and recommendations may be sent latest by November 30, 2004, it said.