Khyber Pakhtunkhwa relief package instalment: SBP invites claims from banks

29 Jan, 2011

The State Bank of Pakistan (SBP) will issue second installment of mark-up rate subsidy for other eligible sectors under fiscal relief package.
The State Bank of Pakistan has advised banks, development finance institutions (DFIs) and microfinance banks (MFBs) to submit claims for second instalment of mark-up rate subsidy in respect of Fiscal Relief Package of the Government of Pakistan for the beneficiaries of eligible sectors other than textiles in Khyber Pakhtunkhwa, Federally and Provincially Administered Tribal Areas.
According to a Circular, (SMEFD Circular Letter No 3), issued on Friday, the Ministry of Finance has advised SBP to release 2nd instalment of the subsidy under the Scheme for the period from 1-7-2010 to 31-12-2010 to the beneficiaries of other eligible sectors. It may be mentioned here that the State Bank of Pakistan had already advised banks/DFIs to submit their claims for second instalment for the beneficiaries of textile sector through a circular on January 15, 2011.
According to the Circular, under the modus operandi of the Scheme, the rate of mark-up differential for 2nd instalment for six months ending on 31st December 2010, has been worked out at 5.32 percent. Banks/DFIs have been advised to submit duly completed claims at SBP-BSC (Bank), Peshawar for reimbursement for the period 1-7-2010 to 31-12-2010, latest by February 28, 2011. However, MFBs may claim mark-up rate differential to the extent of 22.5 percent pa ie differential between 7.5 percent pa and Weighted Average Lending Rates of MFBs ie 30 percent pa or actual rate whichever is lower, the Circular added.

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