The State Bank of Pakistan has jacked up the mark-up rate for financing under Export Finance Scheme (EFS) by 200 basis points (2 percent) from 5.5 percent to 7.5 percent, in line with the increase in policy rate announced in the monetary policy meeting on Monday.
Accordingly, the markup for Export Finance Scheme (both Part I and Part II) will be 7.5 percent p.a. with effect from May 23, 2022, till further instructions. Additionally, the interest rate on the long-term finance facility (LTFF) has been increased by 2 percent to 7 percent.
With this development, the cost of input will go up for exportable sectors particularly textile and allied sectors.
Meanwhile, the other instructions on the subject shall remain unchanged.
To recall, the EFS rate stood at 3 percent for about 5-6 years, before being hiked to 5.5 percent on April 8, 2022.