The rate remains notably low, compared to the bank’s prevailing key policy rate, which is 16% at present. “It has now been decided to reduce the gap between policy rate and EFS and LTFF rates from existing 5% to 3%,” meaning the concessional rates have been increased to 13%, compared to 11% earlier. “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 and LTFF rates is maintained at 3%,” said the SBP. However, the bank’s decision to increase the markup rate is in the right direction. APTMA officials demanded the government and the central bank aggressively cut bank’s key policy rate to create an enabling environment for businesses, including export-oriented ones.

Source: The Express Tribune December 31, 2022 02:21 UTC