Pay mark-up rate subsidy amount to spinners

KARACHI - The State Bank of Pakistan on Thursday advised the commercial banks/DFIs to pay the amount of 3 per cent mark-up rate subsidy for the period January-June 2009 to eligible borrowers of the spinning sector.
It said that the subsidy shall be paid from August 13 to September 15, 2009, and be calculated keeping in view the SBP Guidelines issued vide MFD Circular No 06 dated October 30, 2007 read with SMEFD Circular No. 05 dated February 25, 2009. After making payments of subsidy they (banks/DFIs) may approach the concerned offices of SBP-BSC (Bank) for reimbursement during the time frame fixed for the purpose, says SMEFD Circular letter No 12 of August 13. No subsidy claim shall be entertained after September 15th, 2009, the circular letter added.
It may be mentioned here that the Finance Division, Government of Pakistan, has made necessary provision/allocation in the Federal Budget for FY 2009-10 for disbursement of mark up rate subsidy of 3 per cent to spinning mills for the period Jan-June 2009. Further, Finance Division has also modified time frame given for payment of subsidy, vide SRO issued on 7th August, 2009.