According to the official reports, more than 628 businesses have acquired preferential bank loans that amounted to Rs. 435.7 billion; it is for setting up new businesses and also for expanding the existing ones that have their ongoing production lines in the country under the TERF- Temporary Economic Refinance Facility that was expired on 31st March, 2021.
However, SBP had launched a scheme in the month of March in the previous year of 2020 for one year, right after the Coronavirus pandemic outbreak in Pakistan last year.
Governor Reza Baqir, the Governor of SBP said, Pakistan’s businesses acquired the loans at a markup rate of about 3-5 percent through TERF. This scheme has; however, facilitated the investment in machinery along with the equipment and the plants for new industrialization
He further stated that “We provided banks with a limit (financing targets) and the liquidity. Banks were given a free hand as to take decisions of credit allocation.”
