The highest increase of Rs51 billion has been recorded by the Temporary Economic Refinance Facility (TERF) during one week, which ended on January 28. While the total amount has crossed over 374bn.
Moreover, to counter the negative impact of Covid-19 on the economy TERF has been introduced.
According to State bank of Punjab, the Temporary Economic Refinance faciltiy had shown significant growth over the past 10 months. As shown by the increase in requested Rs36.1 billion by the end of April 2020 to Rs 687.4bn by Jan 28, 2021. While over the same period approved financing has reached Rs374.3bn. Hence, 450 projects have been validated under the similar scheme.
Furthermore, Funding will be provided for the purchase of new imported and locally manufactured plant and machinery for the setting of both startups and existing ventures, as proposed in TERF.
The Plan doesn’t allow the purchases of pre-owned machinery, land or carrying out civil works. According to TERF procurement of new imported and locally manufactured plant and machinery only against LC and inland LC.
Hence, TERF facility is also permitted by SBP. In circumstances where LCs or Inland LCs were opened earlier but retired after the introduction of the scheme on March 17, 2020.