May 23, 2022 (MLN): In line with the increase in policy rate announced in the MPC meeting today, the State Bank of Pakistan (SBP) has moved up the markup rate for financing under Export Finance Scheme (EFS) and Long Term Financing Facility (LTFF) by 2%, said a notice issued by SBP on Monday.

Accordingly, the new rates for EFS and LTFF are 7.5% and 7% per annum which will be effective from May 24, 2022, till further instructions.

“Further, in future, the rates of EFS and LTFF will be linked with SBP Policy Rate through a formula so that any change in policy rate is automatically reflected in rates of these refinance schemes,” the notice read.

While doing so, it will be ensured that rates on these SBP refinance facilities are maintained at such a level that they continue to provide sufficient incentive to the export sector of Pakistan, it added.

Meanwhile, the other instructions on the subject shall remain unchanged.

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