The Presidents/ CEOs,
All Banks/DFIs

Dear Sir/Madam,

Please refer to IH & SMEFD Circular No. 11 dated July 07, 2022 regarding the captioned subject.

2. It has now been decided to reduce the gap between policy rate and EFS & LTFF rates from existing 5% to 3%. Accordingly, markup rates for financing under EFS (Part-I & Part-II) and LTFF are increased from the existing 11% p.a. to 13% p.a. each with effect from December 30, 2022.

3. Further, as mentioned in above referred circular, in future with any change in the SBP policy rate, markup rates for EFS and LTFF will be revised automatically so that the gap between policy rate and EFS & LTFF rates is maintained at 3%.

4. Other instructions on the subject shall remain unchanged.