Under the scheme, Islamic banking branches of conventional banks may also apply to SBP for allocation of limit subject to a maximum of 20pc of the limit under LTFF
for utilisation under ILTFF.
To facilitate the banks in providing finance to the exporters and support the industry SBP has decided to further enhance banks' limits both under EPS and LTFF
Schemes by Rs35 billion.
The State Bank of Pakistan (SBP) has also notified the revision of financing rates under the Export Finance Scheme (EFS) and revision of LTFF
for textile sector with effect from November 2, 2015.
The proposed project entails extending a loan of up to US$70 million to LTFF
with a maturity of up to four years.
The government also accepted APTMA's demand and declared ginning and spinning sectors eligible for the LTFF
Most of the incentives - including lower refinancing and LTFF
rate by 1.
The refinance rates under LTFF
will be currently be 9.
Tanveer said the APTMA's eight-point proposal included withdrawal of electricity surcharges and GIDC (Gas Infrastructure Development Cess), zero rating of all textile exports, strengthening of domestic commerce, export refinance to the entire value chain, refund issues, TUFS (Textile Upgradation Fund Scheme), LTFF
(Long Term Financing Facility) to spinning industry for growth and focus-market support.
However, due to withdrawal of custom duties and taxes, with an introduction of concessional financing and LTFF
on the import of textile machinery in New Textile Policy 2014-19, the new investment in the textile sector has started coming in.
5% to 6% and rates for services charges under LTFF
from 9% to 7.
This incentive, along with LTFF
and TUF, would encourage new investment in textile sector to increase exports.
An earlier notification of the investment instruments like TFS and LTFF
would lead to new openings in the textile sector, he observed.