Pak cuts export refinance rate by one percentage pt
State Bank of Pakistan, the country's Karachi-based central bank, cut the export refinance rate by one percentage point to 6.5 per cent, the first decrease in more than two years, to boost exports.
By Agencies |
KARACHI: State Bank of Pakistan, the country's Karachi-based central bank, cut the export refinance rate by one percentage point to 6.5 per cent, the first decrease in more than two years, to boost exports.
"Exporters are facing stiff competition from India, Bangladesh and China and to provide a level playing field and to maintain the competitiveness, the interest rate was cut," Governor Shamshad Akhtar said. The last time the central bank cut the rate by one percentage point was in June 2004, when it was lowered to 2.5 per cent.
The export refinance rate is the rate at which the central bank lends to commercial banks for loans to exporters. The central allows banks to charge exporters a maximum of 1.5 percentage points more than the refinance rate.
"Exporters are facing stiff competition from India, Bangladesh and China and to provide a level playing field and to maintain the competitiveness, the interest rate was cut," Governor Shamshad Akhtar said. The last time the central bank cut the rate by one percentage point was in June 2004, when it was lowered to 2.5 per cent.
The export refinance rate is the rate at which the central bank lends to commercial banks for loans to exporters. The central allows banks to charge exporters a maximum of 1.5 percentage points more than the refinance rate.
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