The State Bank of Pakistan has allowed financing under Long Term Financing Facility (LTFF) Scheme for import of generators/captive power plants (including other allied machinery items used to generate electricity) in order to facilitate export-oriented industries to overcome problems arising out of prevailing electricity crisis.
According to a circular issued by the State Bank on Monday, the financing facilities for generators/captive power plants will be available, provided the capacity of generator/captive power plant shall not be in excess of their in-house energy requirements for manufacturing of their products. In case of excess generation capacity, only the proportionate financing up to the manufacturing requirements of the unit/project will be eligible.
Refinancing shall be allowed to the extent of 50 percent of financing provided by banks/DFIs for import of generators/captive power plants. Remaining 50 percent shall be financed by the banks/DFIs from their own sources as per the terms & conditions of financing banks/DFIs agreed with the borrowers concerned.
According to the circular, L/Cs established since January 1, 2008 but retired/to be retired during the period from January 1, 2009 to December 31, 2009 shall be eligible for refinancing under the Scheme. Minimum exports of the unit/project should be at least 50 percent of its annual sales, the circular added.