PM package for KP, Fata and Pata: SBP announces markup rate subsidy for July-Dec

RECORDER REPORT

KARACHI: The State Bank of Pakistan (SBP)  announced release of fourth installment of mark-up rate subsidy on business loans for the period of six months ending on December 31, 2011 under Prime Minister's Fiscal Relief Package to rehabilitate the economic life in Khyber Pakhtunkhwa, Federally Administered Tribal Area (FATA) and Provincially Administered Tribal Area (PATA).

Duly completed claims may be submitted by banks at SBP-BSC (Bank), Peshawar, for reimbursement of mark-up rate subsidy for the period from July 1, 2011 to December 31, 2011 on prescribed claim forms, separately for textile sector & other eligible sectors. These claims can be submitted during from January 1 to January 31, 2012, according to IH& SMEFD Circular Letter No.16 of December 14, 2011.

The SBP has informed all banks/development finance institutions (DFIs)/microfinance banks (MFBs) that as per modus operandi of above subsidy scheme the rate of mark-up differential for 4th installment, for six months ending on 31st December 2011, has been worked out at 6.02 percent pa. Accordingly, banks and DFIs may calculate the amount of mark-up rate differential on outstanding business loans of above areas, on the basis of 6.02 percent pa and keeping in view the terms & conditions contained in above Scheme, the Circular Letter said.

However, MFBs may calculate mark-up rate differential to the extent of 22.5 percent pa as communicated in SBP circular letter No. SMEFD/Relief-KPK, FATA/X / 2010 -1779 dated September 24, 2010 addressed to MFBs.