KARACHI, May 31: The State Bank of Pakistan on Wednesday announced to keep the export refinance rate unchanged for the month of June 2006.

The central bank in a circular said that the rate of refinance under the Export Finance Scheme (EFS), which was currently at 7.5pc, would continue to be applicable for the current month.

The SBP directed the commercial banks to ensure that where financing facilities were extended by them to the exporters for availing refinance facilities, their maximum margin or spread did not exceed 1.5pc. 

The interest rates have gone up and banks lending rates are much higher than what the exporters are getting under the export refinance scheme. The extra support is being provided to increase the exports which failed to chase the ever increasing imports putting immense pressure on the country’s balance of payment position.

The financing facilities under Part-B (Export Sales) of the scheme for financing locally manufactured machinery would also attract similar mark up rate structure, the circular added.