Please refer to SMEFD Circular Letter No.01 of 2010 read with IH & SMEFD Circular No. 01 dated March 04, 2014 regarding the subject matter.

2.       In view of the reduction in markup rates under EFS, it is clarified that the rebate was permissible in markup rates only and not a subsidy from the principal amount. Therefore, in cases, where amount of performance based markup rebate under EFS Part-II of any exporter against export performance exceeds the amount of markup already earned by SBP, the maximum rebate amount will be fixed at the level of markup paid to SBP and in no case, SBP refinance rate shall fall below 0%. Banks should mention the correct amount of markup rebate accordingly, while submitting claims of exporters (especially SMEs) for refund of performance based markup.

3.       Other instructions on the subject shall remain unchanged.