In a significant relief measure for exporters, banks have reduced the markup rate on the Export Refinance Facility (ERF) to 4.50 percent.
The reduced rate will apply to all new loans and rollovers until June 27, providing financial support to exporters amid ongoing economic challenges.
According to the Pakistan Banks’ Association (PBA), private sector lending witnessed a substantial increase of Rs1.1 trillion during fiscal year 2025. The agricultural sector, in particular, recorded a milestone, with loan disbursements reaching a record Rs2,580 billion.
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PBA Chairman Zafar Masud stated that the number of agricultural borrowers increased from 2.7 million to 3 million, reflecting improved financial inclusion in the sector. During the first half of fiscal year 2026, private sector lending grew by an additional Rs654 billion.
He further highlighted that the rate of business borrowing from banks increased by 57 percent, indicating stronger economic activity and improved access to credit.
The reduction in the Export Refinance Facility markup rate is expected to ease financial pressure on exporters, enhance competitiveness, and encourage higher export volumes. Financial experts view the move as a positive step toward supporting economic growth and boosting Pakistan’s export sector.
