04-30-2007, 04:41 PM
Shoaib, now a days rate is almost 7 % for export financings, 11.30% to 11.50% for normal short term financing and almost 12.50 % for long term financing. Export financing rate is lower due to government/SBP policies.
However, I was talking about the circumstances prevailing some two years back.
In Pakistan, some times the real interest rate as per the formula becomes negative. You need to keep an eye on the rates in the longer term.
Further, a very meager real interest rate of e.g. 2 % or 3% is also very strange.
I agree that in Pakistan, estimation of inflation is itself a complex issue.
Regards,
Kamran.
However, I was talking about the circumstances prevailing some two years back.
In Pakistan, some times the real interest rate as per the formula becomes negative. You need to keep an eye on the rates in the longer term.
Further, a very meager real interest rate of e.g. 2 % or 3% is also very strange.
I agree that in Pakistan, estimation of inflation is itself a complex issue.
Regards,
Kamran.
