KARACHI (May 01 2003) : The State Bank of Pakistan on Wednesday further cut the rates of export refinance, by 0.5 percent, under the Export Finance Scheme for exporters.
After the change, the new rate would be 3.5 percent per annum which was 4 percent per annum.
The State Bank issued a circular which said: “It has been decided that the rate of refinance under the Export Finance Scheme applicable for the month of May, 2003, will be 2 percent per annum.”
The commercial banks will ensure that where financing facilities are extended by them to exporters for availing refinance facilities under the Export Finance Scheme, their maximum margin/ spread does not exceed 1.5 percent per annum.
The financing facilities under Part-B (Export Sales) of the Scheme for financing Locally Manufactured will also attract similar mark-up rate structure.
The refinance under the Scheme for exporters now has been reduced from 13 percent in July 2001 to 3.5 percent.