KARACHI, Jan 31: The State Bank of Pakistan (SBP) on Friday cut the rate of export refinance by 0.5 per cent i.e. from 6 per cent to 5.5 per cent for February 2003.

According to a BPD circular No.03, the rate of refinance under the Export Finance Scheme (EFS) applicable for the month of February shall be 4 per cent.

The circular further said that commercial banks will ensure that their maximum margin or spread should not exceed 1.5 per annum when financing facilities are extended by them to the exporters for availing refinance facilities under the EFS.

The financing facilities under Part-B (Export Sales) of the scheme for financing Locally Manufactured Machinery (LMM) shall also attract similar markup rate structure.—APP