1. 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

2. Engineers
Entrepreneurship

3. 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

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

5. 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%

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%

7. 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%

8. 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

9. 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

10. 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

11. Thank you