Regulatory Alerts2025-04-07 | EPD Circular Letter No. 01Added · Updated
Replacement of Term LIBOR with Relevant Benchmark Rate in Foreign Exchange Manual
Paragraph 9(v)(a) of Chapter 19 of the Foreign Exchange Manual is amended to replace the term “LIBOR” with “Relevant Benchmark Rate” regarding the cost of borrowing for Foreign Currency loans by Micro Finance Banks/Institutions in Pakistan. The amended rule requires Micro Finance Banks/Institutions to submit local interest rate quotes if their borrowing cost from international institutions exceeds the Relevant Benchmark Rate plus 5%. Authorized Dealers in Foreign Exchange must notify their constituents of this change for compliance.
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