KARACHI, Jan 29: The State Bank of Pakistan on Tuesday reduced the rate of export refinance under Export Finance Scheme to 7 per cent, effective from February 1.

The SBP circular says: “It has decided that effective from February 1, 2002 the rate at which State Bank allow refinance to banks on their disbursement to exporters under EFS shall be 7 per annum.”

The commercial banks shall, however, ensure that where financing facilities are extended by them to the exporters for availing finance facilities under the EFS, their maximum margin/spread does not exceed 1.5 per cent.

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