KARACHI: The State Bank of Pakistan (SBP) has increased the funding maximum for agricultural output storage to ten years from seven years before.
People who want to invest in agricultural storage and infrastructure for Electronic Warehouse Receipt Financing (EWRF) can get loans for as long as 10 years with a two-year grace period, the SBP said on Friday in a letter.
According to the SBP, markup and service costs will be paid quarterly and semi-annually.
In 2010, the central bank launched a plan called “Financing Facility for Storage of Agricultural Produce (FFSAP)” to encourage the private sector to develop silos, warehouses, and cold storages.
Agricultural products can be stored in silos made of steel, metal, and concrete, as well as warehouses and cold storage facilities made of concrete. Long-term financing is available for these projects.
In the past, financing was only available for up to seven years, with a six-month grace period.
If the financing is spread out, the maximum amount of time it can be financed will start on the day that the first instalment is paid.
