KARACHI – The State Bank of Pakistan (SBP) has advised banks and Development Financial Institutions (DFI) to submit claims for second installment with respect to Fiscal Relief Package (FRP) of the government for textile sector beneficiaries in Khyber Pakhtunkhwa, Federal and Provincial Administered Tribal Areas.
The prime minister’s fiscal relief package is envisaged to rehabilitate economic life in Khyber Pakthunkhwa, Federally Administered Tribal Areas (FATA) and the Provincially Administered Tribal Areas (PATA). These areas have been battered by terrorism and devastating summer floods.
According to the SBP circular, SMEFD Circular No 1 issued on Saturday, the Ministry of Finance had advised the release of a second installment of the subsidy under the FRP for the period from July 1 to December 31, 2010 to beneficiaries of the textile sector.
It may be mentioned here that the state bank had already reimbursed first installment of mark up rate differential for six months ending on 30th June 2010 following the release of necessary budgetary allocation by the Ministry of Finance. According to the circular, under the modus operandi of the scheme the rate of mark up differential for second installment, for six months ending on December 31, 2010 had been worked out at 5.32 percent.
Accordingly, the circular added, banks/DFIs might calculate the amount of mark up differential on outstanding loans of textile sector on the basis of said rate in line with the terms and conditions contained in the scheme and submit duly completed claims at SBP-BSC (Bank), Peshawar for reimbursement for the period from July-December 2010 latest by February 15.
