The State Bank of Pakistan (SBP) has kept the Export Refinance Rate unchanged at 7.5 percent for May 2006. "The rate of finance under Export Finance Scheme at 7.5 percent will continue to be applicable for the month of May, 2006," a circular of SBP on Saturday stated.
It said that the commercial banks, however, would ensure that where financing facilities are extended by them to exporters for availing refinance facilities under Export Finance, their maximum margin/spread should not exceed 1.5 percent.
Furthermore, the financing facilities under Part-B (Export Sales) of the scheme for financing locally manufactured machinery will also attract similar mark-up rate structure.