The Presidents / CEOs,

All Banks

Dear Sirs / Madam,

CLARIFICATION OF MARK-UP UNDER

EXPORT FINANCE SCHEME

Please refer to SME&MFD Circular No.22 dated November 30, 2006 regarding fixation of rates under Export Finance Scheme read with SME&MFD Circular No.03 of July 31, 2007.

2. While the existing rate of mark-up on Export Refinance shall continue for the month of September, 2007, it is reiterated that the aggregate financing facilities provided by banks under Export Finance Scheme (SBP & bank funded) shall continue to carry a maximum mark-up of 7.5% irrespective of the fact that SBP has revised mechanism for grant of refinance, provided request for financing by exporters fulfill lending conditions of the financing bank and conditions / criteria prescribed under the Scheme.
3. Other instructions on the subject shall remain unchanged.

Please acknowledge receipt.