State Bank’s TERF scheme produce ‘excellent results’ for Pakistan, says Dawood

The State Bank of Pakistan (SBP) Temporary Economic Refinance Facility (TERF) for businesses has reaped excellent results for Pakistan, said Advisor to Prime Minister on Trade and Investment Abdul Razak Dawood.

He said that due to the central bank scheme a ‘substantial’ amount of investment was brought in Pakistan.

“The Temporary Economic Refinance Facility (TERF) providing long-term concessionary refinance at 5 percent for manufacturers and exporters has shown excellent results. This scheme will come to an end on 31st March 2021. This scheme has brought substantial investment into Pakistan through the purchase of imported and locally manufactured plants & machinery for setting up new projects,” said Dawood in a series of tweets.

It is pertinent to mention that TERF is a concessionary refinance facility aimed at promoting investment both new and expansion and/or Balancing, Modernization and Replacement (BMR). Financing under the facility is available through banks/DFIs to all sectors across the board except power sector where SBP’s refinance facility for renewable energy projects already exists.

The advisor while sharing a chart showing TERF growth till January 7, 2021 said that the increase in financing clearly shows the willingness of our business community to invest when government has the commitment through good policies.

“TERF has shown significant growth over the last 9 months as reflected by increase in requested amount from Rs 36.1 billion by end-April 2020 to Rs 610.2 billion by Jan 07, 2021 while over the same period approved financing has reached to Rs 293.5 billion from Rs 0.5 billion,” he said.