Overview
- The Pakistan Banks Association said member banks reduced the ERF markup by three percentage points, setting the end‑user rate at 4.50% with immediate effect.
- The new pricing applies to all fresh ERF loans as well as rollovers offered by commercial banks.
- Access to the cheaper financing remains limited by the ERF lending cap of PKR 1,052 billion, with capacity increasing only if the State Bank of Pakistan or EXIM Bank raises limits through June 2027.
- Banks bill the step as easing exporter financing costs to support foreign‑exchange inflows as part of wider industry efforts that have included work on circular‑debt reduction and the PIA privatisation process.
- The PBA cited stronger credit deployment, including Rs1.1 trillion private‑sector credit growth in FY25, a 57% rise in SME borrowers, record Rs2.58 trillion in agricultural disbursements, and an additional Rs654 billion in credit during Jul–Dec FY26.