Performance Based Mark-up Rates under Export Finance Scheme (EFS)

Performance Based Mark-up Rates under Export Finance Scheme (EFS)


As you are aware, SBP is already charging lower mark-up rate from exporters against export refinance facility under EFS in order to enable them to become competitive in the international market. In this regard, it has been decided to further incentivize financing under EFS (Part-II) by way of lowering mark-up rates for high performers. The following mark-up rates will be charged from exporters based on their export performance against borrowing from SBP under EFS Part-II:-

The detail is here

2. The exporters who have achieved excess performance as mentioned above will claim benefit of mark-up rate differential from SBP through their bank provided they have no export proceeds overdue bills. The benefit in mark-up rate will be reimbursed to exporters through their banks on submission of claim form (form attached) to respective offices of SBP-BSC, after verification of export performance as per EF-1 statement(s) by FEOD at the end of each financial year.

3 Other instructions on the subject shall remain unchanged.

Mid‐Year Review of Economic Situation of pakistan

Mid‐Year Review of Economic Situation of pakistan
(July‐December 2008)


Pakistan economy is facing mounting pressures from ever‐rising inflation, food prices, the
acute power shortages, a bewildering stock market, a perceptible slowdown in the
manufacturing and services sectors, a sharp increase in interest rates, and widening current
account deficit. The Economic Stabilization Program of the government aimed at reversal of
the situation to promote a stable macroeconomic environment. Signs of early recovery are
becoming visible while fiscal and current account deficits has depicted improvement,
exchange after depreciating by almost 16‐18 percent in the period July‐November 2008 has
remained stable at Rs.79 to a dollar, inflation has started responding to the demand
management, and foreign exchange reserves are starting building‐up. A brief review of the
economic situation during the first half of the current fiscal year 2008‐09 is given below link

Mid‐Year Review of Economic Situation of pakistan

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The Implications of the Global Financial Crisisfor Low-Income Countries

The Implications of the Global Financial Crisisfor Low-Income Countries

The IMF report says that the global financial crisis is expected to have a major impact on low-income countries (LICs). The crisis is projected to increase the financing needs of LICs by at least $25 billion in 2009.

REPORT

Coca-Cola to invest another $2 billion in China

Coca-Cola to invest another $2 billion in China

HONG KONG (Reuters) - Coca-Cola Co, the world's largest soft drinks maker, said on Friday it will invest $2 billion in new plant and distribution infrastructure in the next three years in China.
The company would also speed up development to ensure products suit local taste, it said in a statement.
The $2 billion investment comes in addition to the $2.4 billion already committed to Huiyuan Juice Group, a company spokesman said.
Asset prices have come down amid the global financial crisis, which triggered concerns that the Coca-Cola's takeover bid for Huiyuan may not go through. Huiyuan's share price, which edged up 0.66 percent on Friday, was traded a quarter below Coca-Cola's offer of HK$12.2 per share.
But Huiyuan Juice, the country's top juice maker, said earlier this week it was not aware of any changes in Coca-Cola's bid for the company and said the U.S. company would be obliged to make the offer if pre-conditions were met.
If the bid is successful, it would be the largest acquisition of a Chinese firm by a foreign rival. The deal is pending Chinese government approval.
"Our commitment and confidence in China never wavers," Muhtar Kent, president and CEO of Coca-Cola, said in the statement.
The company's largest innovation and technology center in Asia was opened in Shanghai on Friday. The $90 million center was part of a three-year investment plan in China, it added.

Central banks introduction

Central banks introduction

A bank's bank and a public authority that regulates the nations depository institutions and controls the quantity of money.

functions are:

1) Set monetary policy
2) determine how the economy behaves
3) Respond to economic and financial market conditions within their jurisdiction.
4) Control money supply
5) Regulate the banking system
6) issue currency

BoE cuts rates to 0.5 percent, to pump money into economy

BoE cuts rates to 0.5 percent, to pump money into economy


LONDON (Reuters) - The Bank of England cut interest rates by 50 basis points to a record low of 0.5 percent on Thursday, and said it would pump 75 billion pounds of new money into buying assets, mostly gilts, to combat the recession.
UK government bonds soared on the news the BoE would be starting so-called quantitative easing -- effectively printing money -- on such an aggressive scale over the next three months. The asset buying program equates to around 5 percent of GDP.
Doubts remain over whether it will work but the BoE may have had no choice -- the economy shrank at its fastest pace in nearly 3 decades at the end of 2008, house prices are sinking at record rates and hundreds of thousands of jobs have disappeared.
"The world economy has turned down very rapidly since last Autumn, the amount of money is not growing at all, and the economy is in a recession, so we need to increase the supply of money," BoE Governor Mervyn King said on Sky Television.
The government set the BoE an overall limit of 150 billion pounds for new money it can create, though 50 billion of this is money which had been previously earmarked for the Asset Purchase Facility but will now be unfunded.
Quantitative easing has previously only been tried in Japan in the early part of the decade with limited success. But it has now become a watchword for central banks everywhere as interest rates near zero in the most serious world downturn for decades.
The European Central Bank also cut interest rates by 50 basis points to a record low of 1.5 percent on Thursday. U.S. interest rates are between 0 and 0.25 percent and Japan's are at 0.1 percent.
Economists said the BoE would stop at 0.5 percent, after cutting by a total of 4.5 percentage points in six months, due to worries that very low rates could start having a counter-productive effect by hitting bank profits.
"We expect this to be the final reduction in policy rates, with Bank Rate maintained at this level for a considerable period," said Ross Walker, UK economist at RBS. "Overall, the scale and timing of the QE operations appears significant."
"The lasting benefits for credit availability and demand are much more uncertain but, given the severity of the macroeconomic and financial backdrop, it is worth a try."

Banking jobs

Banking jobs

Banking industry of Pakistan is expanding very fast offering numerous opportunities for the talented professionals of Pakistan. The banks are rightly looking for relevant talent and therefore advertising on regular basis. Direct link with bank advertising the position are created for your convenience. Best of luck.

Visit at jobs

Downturn to be considerably deeper than IMF forecast: OECD

Downturn to be considerably deeper than IMF forecast: OECD

PARIS (Reuters) - The global economic downturn will be considerably deeper than even the International Monetary Fund forecast a month ago, the Organization for Economic Co-operation and Development's chief economist Klaus Schmidt-Hebbel told Reuters.
Further substantial cuts in interest rates by the European Central Bank and Bank of England are totally justified, he said in an interview. These were to be expected in response to the worst spell the economy has suffered since 1946, when military spending plunged after World War Two.
"The recession will deepen...there's no doubt," he said. "I think this quarter will be the worst quarter of all."
On January 28, the IMF cut its forecast for global growth to 0.5 percent in 2009 from an earlier prediction of 2.2 percent. It also forecast a 2.0 percent slide in economic output from the world's most advanced economies as a whole, an equally large downgrading of forecasts it had made in November 2008.
Even those drastic revisions failed to reflect the extent of the downturn at this stage, said Schmidt-Hebbel.
He is preparing new forecasts for publication at the end of March by the Paris-based OECD, which will be cutting its own predictions from those it made last November.
"The shape of it will be a significantly deeper recession than what was forecast by the IMF in January, at all levels," said Schmidt-Hebbel. "(It will be) significantly deeper and more protracted -- meaning longer than what is embodied in the IMF forecasts of late January."

AIG enters record books with $61.7 billion loss

AIG enters record books with $61.7 billion loss

NEW YORK (Reuters) - American International Group Inc posted a $61.7 billion fourth-quarter loss -- the biggest quarterly loss in corporate history -- after reaching a revised rescue deal with the U.S. government that wards off for now the prospect of crippling credit rating downgrades.
The massive quarterly loss, equal to $22.95 a share, was AIG's fifth in a row, bringing the total loss over that period to more than $100 billion.
The U.S. Treasury and Federal Reserve said AIG had posed a systemic risk requiring government action to prevent its problems from damaging the entire financial system.
AIG, the recipient of $150 billion in taxpayer aid last year, will get access to an additional $30 billion under the government's revised plan announced on Monday.
It also got more lenient terms on existing financing and will be able to significantly pay down an outstanding credit facility in a swap that will give the government a preferred-share stake in two life insurance businesses.
AIG also announced plans to spin off part of its property-casualty business, to be renamed AIU Holdings.
The revamped rescue package is the third since last fall when the government stepped in to bail out AIG, once the world's biggest insurer by market value.
The Treasury and the Fed said that AIG, which has counterparties around the globe, was so important to the U.S. economy and financial system that it had to be helped, and they held out the possibility more aid might be needed.
"This will take time and possibly further government support if markets do not stabilize and improve," they said in a statement.