September 05, 2009

The SBP announced the new financing scheme on Friday with a view to encourage the ginners to upgrade their factories for production of quality ginned cotton for the textile industry.Cheap financing will also be available to meet the shortage of electricity for which a generator of up to maximum capacity of 500kv could be bought with the borrowed money.

The SBP said the financing will be available only for balancing, modernisation and replacement (BMR) of ginning factories while financing for cotton seeds crushing machinery will also be available.However, the SBP made it mandatory that the financing will be available only to new locally manufactured plant, machinery and equipment.The SBP made it clear that only SME borrowers, as defined in Prudential Regulations, will be eligible to avail financing facilities under the scheme.