Islamabad February 16 2022: As per the latest data released by Pakistan Bureau of Statistics (PBS), Pakistan Machinery imports witnessed an increase of 32 percent YoY during 7MFY22 due to Temporary Economic Refinance Facility (TERF) introduced by State Bank of Pakistan (SBP).
Country imported Textile Machinery of worth USD million which is up by 78 percent YoY during 7MFY22. The rise in imports is triggered by expansion in Textile sector.
Construction & Mining Machinery imports also increased by 67 percent YoY during 7MFY22. The rising construction activity led this increase in imports.
Electrical Machinery & Apparatus imports also increased by 50 percent YoY during 7MFY22. Imports of Office Machine Including Data Processing Equipment, Telecom and Power Generating Machinery also increased by 39 percent, 20 percent and 7 percent, respectively.
Agricultural Machinery & Implements imports went up by 36 percent to USD 71 million during 7MFY22.
In order to support sustainable economic growth especially in the backdrop of challenges being faced by the industry in post-pandemic scenario, State Bank of Pakistan (SBP) has introduced Temporary Economic Refinance Facility (TERF). The facility will provide concessionary refinance for setting up of new industrial units. Refinance under the facility will be available through banks/DFIs to all sectors across the board except power sector where SBP’s refinance facility for renewable energy projects already exists. Salient features of the scheme are as under:
- Scope & Eligibility Criteria: Long term finance facility for purchase of new imported and locally manufactured plant & machinery for setting of new projects
- Maximum limit: Rs. 5 billion per project
- Tenor: 10 years including grace period up to 2 years
- End User Rate: Maximum 7% p.a. (SBP rate of refinance will be 3%)
- Repayment of finance: Quarterly/ half-yearly basis
- Validity of the facility: LCs/ILCs established from the date of announcement of the scheme till 31st March, 2021 will be eligible for the TERF
