Exports costlier

Exports of leather from Pakistan will be a little costlier. The State Bank of Pakistan increased the rate of export refinance to 7.5% for July from 6.5% in June. Accordingly, the banks can now make export loans at a maximum mark-up of 9% after charging a spread of one-and-a-half percentage points. But a 9% export finance rate for July would be higher than the weighted average lending rate of the banks during that month. And this makes exporters feel shaky. 'It is as if the central bank wants to penalise exporters', says A Rahim Janoo, a member of the Federal Export Board.