KARACHI: The State Bank of Pakistan (SBP) has enhanced the financing limit for storage of agricultural produce to 10 years from the previous seven years.

The SBP, on Friday issued a circular stating that with a view to further promote investment in the storage of agricultural produce and to enhance infrastructure for Electronic Warehouse Receipt Financing (EWRF), the maximum period of financing will be up to 10 years with maximum grace period of up to 2 years.

The SBP said that markup and service charges will be paid quarterly and half-yearly.

The central bank in the year 2010 introduced financing for storage of agricultural produce with a scheme “Financing Facility for Storage of Agricultural Produce (FFSAP)” to encourage the private sector to establish silos, warehouses and cold storages.

The financing is available on a long-term basis for establishment, expansion and balancing, modernisation and replacement (BMR) of steel, metal and concrete silos, warehouses and cold storage facilities for storing agricultural produce.

Previously, the financing was available for a maximum period of seven years including a maximum grace period of six months.

In case, the financing is provided on staggered basis, the maximum period of financing will start from the date of disbursement of the first installment.