The State Bank of Pakistan (SBP) boosted export finance markup rates by 200 basis points.
The Circular was issued late Thursday to reduce the spread between the policy rate, Export Finance Scheme (EFS), and Long-term Financing Facility (LTFF) from 5% to 3%.
Accordingly to the SBP circular, the markup rates for financing under EFS (Part-I & Part-II) and LTFF are increased from 11% per annum to 13% per annum, each with effect from December 30, 2022.
The central bank said that any change in the SBP policy rate would automatically update EFS and LTFF markup rates to maintain a 3% gap.
The SBP has raised working capital financing and plant machinery interest rates.
EFS and LTFF rates were 3%-5% through March 2022. The SBP linked EFS and LTFF rates on July 7, 2022.
The SBP raised the policy rate to 16% last month to preserve growth post-floods and manage inflation. On January 23, the central bank will announce the next interest rate.
 boosted export finance markup rates by 200 basis points. The new SPB export financing markups would be 13%.){kind=link}