The Presidents / CEOs
All Banks

Dear Sir/Madam,

Export Finance Scheme (EFS) and Long Term Financing Facility (LTFF)

Please refer to IH & SMEFD Circular No. 07 dated May 23, 2022 regarding the captioned subject.

2. As mentioned in the above-referred circular, the rates of EFS and LTFF have now been linked with SBP Policy Rate by keeping these rates currently 5% below Policy Rate. Accordingly, with effect from July 08, 2022:

1. Mark up rate for financing under EFS (Part-I & Part-II) is increased from 7.5% p.a. to 10% p.a.; and
2. Mark up rate for financing under LTFF is increased from 7% p.a. to 10% p.a.

3. Accordingly, with any change in the Policy Rate, markup rates for EFS and LTFF will be revised automatically so that the gap between Policy Rate and EFS and LTFF rates is maintained at 5%. However, this gap is subject to revisions in view of future economic activity.

4. Other instructions on the subject shall remain unchanged.