Islamic Financing Facility For Renewable Energy (IFRE)Islamic Financing Facility For Renewable Energy (IFRE)

Islamic Financing Facility For Renewable Energy (IFRE)

To reduce reliance on fossil fuels and promote renewable projects in the country, State Bank of Pakistan announced financing scheme titled “Islamic Financing Facility for Renewable Energy” (IFRE). Under the scope of IFRE, BAFL-IBG provides financing for power projects/installations using alternative /renewable energy sources (solar, wind, hydro, biogas, biofuels, bagasse cogeneration and geothermal as fuel).

Eligibility Criteria:

The financing is available under following three categories:
Category 1: Sponsors desirous of setting up renewable energy power projects with a capacity ranging from more than 1 MW and up-to 50MW

Category 2: Sponsors willing to install renewable energy source based solutions for generation of electricity ranging up-to 1MW 

Category 3: Vendors/suppliers certified under AEDB Certification Regulation 2018 for installation of wind and solar systems on lease basis or selling of electricity 

Sectors eligible for financing are as follows:

  • Domestic
  • Commercial
  • Industrial
  • Agriculture


Type of Financing To finance purchase/installation of renewable energy power projects.
Pricing/ Return Maximum End-User rate for all eligible sectors: 6%. 
Maximum Financing Limit

Category 1: Rs. 6 billion for a single Renewable Energy Project.

Category 2: Rs. 400 million for a single customer.

Category 3: Rs. 1 billion for financing requirements of single vendor/supplier


Category 1: Maximum period of twelve (12) years including a maximum grace period of two (02) years

Category 2: Maximum period of Ten (10) years with grace period of three (03) months

Category 3: Maximum period of Ten (10) years with maximum grace period of six (06) months

SBP Scheme Link

For more details, visit your nearest Bank Alfalah Islamic branch or call us at 021 111225111.