PAKISTAN HOSIERY MANUFACTURERS & EXPORTERS ASSOCIATION

PHMA House, 37-H, Block-6, P.E.C.H.S, Karachi.

Tel: 0092-21-34522769, 34522685, 34544765

Fax: 0092-21-34543774, E-mail: info@phmaonline.com



To: All Members of the Association (Southern Zone)

REF. NO. PHMA/CIR-112/2010 DATED: 02nd October 2010


Subject: SBP Monetary Policy and new Export Finance Rate




PAKISTAN HOSIERY MANUFACTURERS & EXPORTERS ASSOCIATION

37-H, BLOCK-6 P.E.C.H.S., KARACHI-PAKISTAN

TEL: 0092-21-34522769, 34522685, 34544765 FAX: 0092-21-34543774

E-MAIL: info@phmaonline..com    URL www.phmaonline.com

 

REF. NO. PHMA/CIR-112/2010

DATED: 2nd October 2010

 

TO ALL MEMBERS OF THE ASSOCIATION

 

Subject: SBP Monetary Policy and new Export Finance Rate

 

 

So far The State Bank of Pakistan was providing funds to banks at a minimum markup rate of 8.5 percent under EFS scheme, and banks with one percent services charges/margin were providing loans to exporters at a maximum rate of 9.5 percent. Now, under its plan to eliminate subsidies, the SBP has enhanced the markup rate under EFS by 0.5 percent to 9 percent from 8.5 percent. After imposition of one percent margin exporters can borrow loans for export purposes at 10 percent markup, against 9.5 percent previously.


SBP above decision on Export Finance Scheme (EFS) vide Circular No. 13 SMEFD of 2010 is found below for your information.

Also, SBP Monetary Policy decision of 29th September 2010 raising interest rate to 13.5% is being circulated to all members (enclosed pdf file).

 

 

SMEFD Circular No. 13 of 2010

September 30, 2010 

 

The Presidents/ CEOs,

All Banks.

Dear Sirs /Madam,

Revision of Financing Rates under the Export Finance Scheme (EFS)

Please refer to SMEFD Circular No. 10 dated June 30, 2010 on the captioned subject.

2. It has been decided that rate of refinance under the Export Finance Scheme applicable from October 1, 2010 and onward till further instructions shall be 9% p.a. The commercial banks shall ensure that where financing facilities are extended by them to the exporters for availing refinance facilities under the Export Finance Scheme, their maximum margin / spread does not exceed 1% p.a.

3. The financing facilities under Part-B (Export Sales) of the Scheme for financing Locally Manufactured Machinery shall also attract similar mark up rate structure.

4. The reimbursement of mark-up rate benefit to exporters, on excess performance under Part-II of the Scheme, as specified in SMEFD Circular No.15 dated October 31, 2009, will be adjusted accordingly keeping in view the revised mark-up rates.

5. Other instructions on the subject shall remain unchanged.

Please acknowledge receipt.

 

Yours faithfully,

(Mansoor H. Siddiqui)

Director

Thanks and Best Regards,

 

 

Yunus Bin Aiyoob

Secretary General




Circular112.pdf