Pakistan central bank launches new Islamic liquidity facilities for SMEs, renewable energy, agriculture

The State Bank of Pakistan has launched three new Shariah-compliant refinance schemes to support banks to lend to small businesses, renewable energy, and agricultural projects, it said in a statement on Friday.

The facilities will be based on the risk-sharing mudarabah contract.

The financing will be available for companies that want to set up renewable energy power projects with capacity ranging between 1 and 50 megawatts and for consumers to install renewable energy sources for the generation of electricity ranging from 4 kilowatts to 1 MW either for their own use or to supply to a distribution company.

The scheme for the storage of agricultural produce will be available for setting up of silos, warehouses and cold storages.

SMEs can access the scheme for the purchase of new plants and machinery.

SBP said the introduction of the three new schemes will level the playing field for Islamic financial institutions as the central bank already offers similar facilities for the conventional banks.

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