Refinance facilities are targeted loans issued from the State Bank of Pakistan (SBP) in order to raise exports and industrial growth to improve the country’s economy. SBP has time-to-time introduced these schemes under its refinance window to guarantee adequate financing to the value-added enterprises at competitive rates to increase production capacity and to meet working capital requirements. Basic Information regarding the TERF Scheme: Now, if we talk about the TERF Scheme, it incorporated a measure called Balancing, Modernization, and Replacement (BMR). SBP had taken these initiatives to provide incentives to the economy amidst the COVID-19 pandemic. Under the TERF Scheme, the SBP is providing refinance to banks for the sake of their onward extension of financing at a maximum end-user rate of 7% for a period of ten years. Under the TERF Scheme, the maximum financing for a single project is Rs5 billion.