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Tag: loans

  • Interest rates on export, business loans enhanced to 10%

    Interest rates on export, business loans enhanced to 10%

    KARACHI: The State Bank of Pakistan (SBP) on Thursday enhanced the interest rates under export refinancing and long term refinancing to 10 per cent.

    The SBP in a circular said that as mentioned in the above-referred circular, the rates of Export Finance Scheme (EFS) and Long Term Financing Facility (LTFF) have now been linked with the central bank’s policy rate by keeping these rates currently 5 per cent below policy rate.

    READ MORE: Pakistan hikes key policy rate by 125 basis points to 15%

    Accordingly, with effect from July 08, 2022:

    — Mark up rate for financing under EFS (Part-I & Part-II) is increased from 7.5 per cent p.a. to 10 per cent p.a.; and

    — Mark up rate for financing under LTFF is increased from 7 per cent p.a. to 10 per cent p.a.

    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 per cent. However, this gap is subject to revisions in view of future economic activity, the SBP added.

    READ MORE: Pakistan may see further 100bps hike in policy rate

    The SBP in its monetary policy announced today (July 07, 2022) mentioned that in the last monetary policy statement, the interest rates on EFS and LTFF loans are now being linked to the policy rate to strengthen monetary policy transmission, while continuing to incentivize exports by presently offering a discount of 500 basis points relative to the policy rate.

    READ MORE: SBP increases interest rate by 150bps to 13.75%

    This combined action continues the monetary tightening underway since last September, which is aimed at ensuring a soft landing of the economy amid an exceptionally challenging and uncertain global environment.

    It should help cool economic activity, prevent a de-anchoring of inflation expectations and provide support to the Rupee in the wake of multi-year high inflation and record imports.

    READ MORE: SBP may increase key policy rate by 100bps: poll

  • SBP approves Rs82.6 million interest free student loan

    SBP approves Rs82.6 million interest free student loan

    KARACHI: The State Bank of Pakistan (SBP) has approved an amount of Rs82.6 million as interest free loan for deserving students.

    The apex committee for Student Loan Scheme having representation from State Bank of Pakistan, Finance Division (Government of Pakistan) and five major banks (NBP, HBL, UBL, ABL and MCB Bank) has approved Rs 82.6 million as interest-free loans to deserving students for their studies within Pakistan.

    The amount, approved by apex committee, will be disbursed to 518 deserving students of public sector universities across the country, studying in different disciplines of under-graduation, graduation and PhD studies for the Session 2017-18, 2018-19 & 2019-2020.

    The objective of the Student Loan Scheme is to provide financial assistance to the meritorious students having insufficient means. The loans are granted for a maximum tenor of 10 years from the date of the disbursement of first installment and repayable in monthly installments after six months from the date of first employment or one year from the date of completion of studies, whichever is earlier.

    National Bank of Pakistan, being the administrator of the Scheme, performs all the functions like receiving and scrutinizing the loan applications, disbursement of loans and their recovery.

  • ADB approves $235 million to upgrade Pakistan roads

    ADB approves $235 million to upgrade Pakistan roads

    ISLAMABAD: The Asian Development Bank (ADB) has approved $235 million to Pakistan on Thursday to enhance national highway in country.

    A statement issued by ADB stated that the project will focus on expansion of 222-kilometer Shikarpur-Rajanpur section of National Highway into four lane carriageway from a two lane road.

    The expansion is part of the Central Asia Regional Economic Cooperation (CAREC) Corridor 5 which links the ports of Karachi and Gwardar in southern Pakistan with national and international economic centers to the north.

    The Transport Specialist in ADB said that the project will increase space of the busy highway section that travels through the busy economic centers in Sindh and Punjab.

    They further said that the project will ensure the road safety so that the users can travel easily and smoothly. They will also construct the bus stops and emergency response centers to facilitate the people. The first tranche of the loan of $180 million was issued in September 2017 for the improvement of 143 kilometers of Highway in province of Sindh and Khyber PakhtunKhwa.