KARACHI. Apr 3: Pakistan’s central bank today cut it shortterm lending rate to commercial banks by 1.5 per cent in a bid to ease credit, reports AFP.

The State Bank of Pakistan will now charge 14 peg cent on loans it extends to commercial banks for up to three days to meet their short-term liquidity requirements, officials said.

It was the third reduction since June 1998 when the central bank had been charging 18 per cent. Officials said the move would induce commercial banks to slash their prevailing lending rate of 18 to 19 per cent.

Business sources said high interest rates were hampering industry and making exports less competitive.

Five large commercial banks last week agreed to cut their lending rates by two per cent.