KARACHI: The State Bank of Pakistan (SBP) in a circular issued on Thursday notified all banks and development finance institutions that the financing limit for a project under the Long-Term Financing Facility (LTFF) and Islamic Long-Term Financing Facility (ILTFF) has been increased from Rs1.5 billion to Rs2.5bn.

The decision has been taken to promote investment in the export-oriented projects, said the bank’s press release.

Under the LTFF, financial institutions can provide long-term currency finance for imported and locally manufactured plant and machinery to be used in the export-oriented projects. The financial institutions can charge a maximum spread of 1.5 per cent, 2.5pc and 3pc per annum for financing up to three, five and ten years respectively.

The core sectors eligible to avail LTFF include textile and garments, rice processing, leather and leather products, sports goods, carpets and wool and surgical instruments.

Published in Dawn, April 26th, 2019