Mark-up against loans to continue at 6.5 pc for exporters in Pakistan
Pakistan Times Business & Commerce Desk

KARACHI: State Bank of Pakistan has decided Monday to maintain the mark-up rate at 6.5 per cent against the loans borrowed by exporters.

According to central bank circular issued here, mark-up rate would be maintained at current 6.5 per cent under the ‘export finance scheme’.

Moreover, banks would be allowed to receive maximum one per cent margin against the loans. Consequently, the exporters would be given loans at maximum 7.5 per cent.

The same discounted rate has also been prescribed for loans availed for locally manufactured machinery.

Average Rate

Yet another report says that during the previous fiscal year, banks paid profits to their account-holders at a relatively high rate.

According to statistics issued by the central bank, the previous fiscal year profit rate against banks’ accounts was increased by average 175 basis points; whereas, an increase of average 86 basis points was observed in mark-up rate charged against loans.

In July 2005, average markup rate charged on the total bank loans was 9.07, which soared to 9.93 per cent with an increase of 86 basis points in June 2006.
Moreover, during this period, average profit rate on banks’ accounts increased from 2.97 per cent to 4.72 per cent.

Within one year, the specialized banks and private sector’s banks raised profit rate against their accounts by 3.85 per cent and 2.27 per cent respectively.●