Dr Mirza Ikhtiar Baig, Chairman, Federation of Pakistan Chambers of Commerce and Industry's (FPCCI) Standing Committee on Banking, Credit and Finance, while appreciating Governor State Bank of Pakistan for reduction in discount rate by 150 basis points has requested him to cut export refinance rate. Export refinance is a concessional financing scheme of SBP to boost the exports of Pakistan.
The exporter has to give double the export business of export refinance loans. Presently, SBP export refinance rate is 11 percent and the banks are charging 1.5 percent to 2 percent profit making it 13 percent to the exporters which is nearly normal banks lending rates.
The president and the prime minister also urged the need to reduce the mark-up rates for new investment and high GDP growth, which was conveyed by Dr Baig to Acting Governor SBP Yaseen Anwar. Dr Baig said that according to Yaseen, due to IMF programme State Bank was unable to reduce ERF rate, but now as Pakistan is out of IMF programme, SBP will reduce export refinance rate to boost exports.-PR
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