by Imran Ahmad Additional Director, State Bank of Pakistan Incentives & Schemes offered by State Bank of Pakistan for promotion of SMEs by Imran Ahmad Additional Director, State Bank of Pakistan

Engineers Entrepreneurship

SBP Refinance & Credit Guarantee Schemes Prime Minister Youth Business Scheme Financing Facility for Modernization of SMEs Financing Scheme for Renewable Energy Financing Facility for Storage of Agricultural Produce Credit Guarantee Scheme Refinance and Credit Guarantee Scheme for Women Entrepreneurs in Underserved Areas

PMYBL Youth Borrower Rate 6% Tenure upto 8 years Financing Limit 2 million

Financing Facility for Modernization of SMEs Long-term facility for SMEs Objective is to encourage modernization/ up gradation of plant & machinery, and to meet power shortages Financing is available for local procurement/ imported plant and machinery of existing/ new SMEs Facility is offered for a period up to 10 years Mark up rate is 6%

Financing Scheme for Renewable Energy To promote renewable energy projects in the country Financing is available for establishing new Power Projects using renewable energy with a capacity of more than 1 MW and up to 50 MW Renewable energy sources (wind, hydro, biogas, biofuels, bagasse cogneration, solar power and geothermal) Facility is offered for a period up to 12 years (with 2 years grace period) Mark up rate is 6%

Financing Facility for Storage of Agricultural Produce To enhance storage capacity and develop agricultural produce marketing Financing is available for local procurement/ import of new plant & machinery/ new generators used in silos/ warehouse / cold storages Financing of up to Rs 500 million to a single project Facility is offered for a period of 7 years (with grace period of up to 6 months) Mark up rate is 6%

Credit Guarantee Scheme for Small and Rural Enterprises SBP launched CGS for Small and Rural Enterprises in March 2010 Risk coverage of up to 60% against credit losses of PFI’s* lending to small, micro and rural enterprises Scheme aims to encourage lending towards fresh and collateral deficient borrowers In addition to this, risk coverage of 60% against all loans extended to women borrowers, start-up businesses and small, rural and micro enterprises operating in the under-served areas of the country * Participating Financial Institutions

Major Priority Clusters to be targeted under Credit Guarantee Scheme Surgical instruments Sports Goods Fans Ceramics Cutlery Fisheries Agro Services (Cold Storage Bio Gas etc.) Retail Enterprises

Refinance and Credit Guarantee Scheme for Women Entrepreneurs in Underserved Areas Target market Women entrepreneurs in underserved areas Maximum financing amount Rs 1.5 million Financing tenor and grace period Up to 5 years with grace period of upto 6 months End user mark-up rate Up to 5% Purpose of financing Setting up of new businesses or expansion of existing ones Risk coverage 60% of outstanding principal Collateral requirements Preferably on the basis of personal guarantee of the borrower Limit allocation At least 20% of the allocated limit fixed for lending to women entrepreneurs in Balochistan

Thank you