KARACHI: Banks and DFIs have approved loans worth Rs 435 billion under the State Bank of Pakistan’s Temporary Economic Refinance Facility (TERF), informed governor SBP Dr Reza Baqir on Monday.

While, addressing an inaugural ceremony of Services Long March Tires Plant for manufacturing of Bus and Truck Radial Tyre, he informed that TERF was launched during the Covid-19 pandemic aimed to promote investment both new and expansion and Balancing, Modernization and Replacement (BMR).

“Pakistan’s industry has a lot of potential to increase the exports, however, we could not get the full benefit of our potential in the past due to various reasons,” he added.

He said that there was fear and uncertainty among the business community during the Covid-19 outbreak, therefore, SBP decided to launch TERF and its Shariah compliant version to stimulate new investment in the manufacturing sector. Financing under the facility is available through banks/DFIs to all sectors across the board, he added.

So far, loans amounted to Rs 435 billion have been approved under the scheme and Service Long March has also availed this facility to initiate export. He said that now the SBP’s basis vision is financial stability, controlled inflation and sustainable growth.