KARACHI (December 10 2003): The State Bank has decided to revamp the entire financing system of locally manufactured machinery (LMM) in order to broaden the financing for the manufacturing sector.
The State Bank issued a circular on Tuesday saying that it is in the process of revamping the locally manufactured machinery (LMM) scheme to make it in line with the present requirements of various industries as well as broadening its scope to cover the financing of manufacturing sector.
The banks and leasing companies, which meet certain prescribed requirements, would be approved as 'Participating Financial Institutions' (PFIs) for the purpose of providing facilities under this scheme, said the SBP circular.
In order to seek input from stakeholders, the draft of the revised LMM scheme, along-with its forms etc, has been placed on the SBP website.
“We shall appreciate valuable feedback and recommendations from the stakeholders, if any, along with justification thereof, which may be sent through e-mail, fax or surface mail up to 27th December 2003,” said the circular.
The State Bank had introduced the LMM scheme in 1972 and has been providing refinancing facilities to the industrial sector through designated banks and approved development finance institutions (DFIs).
“However, currently, the scheme is at a stage of stagnation and, therefore, calls for revamping the entire scheme,” said the circular.