KARACHI: The refinance rate under the Export Finance Scheme was increased by one percent to 11 percent to meet the IMF condition by the State Bank of Pakistan (SBP).
The IMF had asked the SBP to end subsidies on all export related financing in a phased manner.
The SBP on Friday said it has decided that the rate of refinance under the Export Finance Scheme applicable from January 1, 2011 and onward till further instructions shall be 10.00 percent pa from 9.00 percent. The commercial banks shall ensure that where financing facilities are extended by them to the exporters for availing refinance facilities under the Export Finance Scheme, their maximum margin/spread does not exceed one percent pa.
The financing facilities under Part-B (Export Sales) of the Scheme for financing Locally Manufactured Machinery shall also attract similar mark-up rate structure. The reimbursement of mark-up rate benefit to exporters, on excess performance under Part-II of the Scheme, as specified in SMEFD Circular No 15 dated October 31, 2009, will be adjusted accordingly keeping in view the revised mark-up rates. Other instructions on the subject shall remain unchanged. Now exporters can get financing for export purposes at 11 percent per annum, which definitely would raise the cost of export oriented products
Dear TNT Reader,
At The News Tribe, our mission is to bring you free, independent, and unbiased news and content that keeps you informed and empowered. We are committed to upholding the highest standards of journalism, as we understand that we are a platform for truth.
Apart from independent global news coverage, we also commit our unique focus on the Muslim world. In an age marked by the troubling rise of Islamophobia and widespread misrepresentation of Muslims in Western media, we strive to provide accurate and fair coverage.
But to continue doing so, we need your support. Even a small donation of 1$ can make a big difference. Your contribution will help us maintain the quality of our news and counteract the negative narratives that are so prevalent.
Please consider donating today to ensure we can keep delivering the news that matters. Together, we can make a positive impact on the world, and work towards a more inclusive, informed global society.
Donate Monthly Subscription Annual Subscription