The latest development in Pakistan's banking sector is a voluntary reduction of 3 percentage points in the markup rate on the Export Refinance Facility (ERF), bringing the cost down to 4.50% for exporters. This decision, effective immediately, is aimed at boosting the export sector by lowering borrowing costs and enhancing foreign exchange inflows, as reported by Profit by Pakistan Today and echoed by TechJuice and Business Recorder. The Pakistan Banks Association (PBA) emphasized that this move is in the 'national interest' to 'materially promote economic progress' and is part of broader efforts to stabilize the economy, including reducing circular debt and facilitating the privatization of Pakistan International Airlines (PIA). The ERF limit stands at Rs1,052 billion, with potential for expansion if the State Bank of Pakistan or EXIM Bank increases the cap through June 2027.