In accordance with the rise in policy rate announced at the monetary policy meeting on Monday, the State Bank of Pakistan increased the mark-up rate for financing under the Export Finance Scheme (EFS) by 200 basis points (2%) from 5.5 percent to 7.5 percent.
As a result, from May 23, 2022, until further instructions, the markup for the Export Finance Scheme (including Part I and Part II) will be 7.5 percent per year. In addition, the long-term financing facility (LTFF) interest rate has been raised by 2% to 7%.
The cost of input for exportable industries, notably textile and allied sectors, would rise as a result of this growth.
Other directions on the topic will stay unaltered in the meanwhile.
The EFS rate was formerly set at 3% for around 5-6 years before being raised to 5.5 percent on April 8, 2022