The Presidents/ CEOs,
All Banks/DFIs

Dear Sirs/Madam,

Export Finance Scheme (EFS)/Islamic Export Refinance Scheme (IERS) and Long Term Financing
Facility (LTFF)/Islamic Long Term Financing Facility (ILTFF)

Please refer to IH & SMEFD Circular No. 06 dated April 07, 2022, IH&SMEFD Circular Letter No. 19 dated July 08, 2020 and other instructions issued from time to time regarding the captioned subject.

2. It has been decided that w.e.f May 24, 2022:

1. Mark up rate for financing under EFS is enhanced from 5.5% p.a. to 7.5% p.a.; and
2. Mark up rate for financing under LTFF is enhanced from 5% p.a. to 7% p.a.

3. Further, in future, the rates of EFS and LTFF will be linked with SBP Policy Rate through a formula so that any change in Policy Rate is automatically reflected in rates of these refinance schemes. While doing so, it will be ensured that rates on these SBP refinance facilities are maintained at such level that they continue to provide sufficient incentive to export sector of Pakistan.

4. Other instructions on the subject shall remain unchanged.