KARACHI, January 29 (Online): The State Bank of Pakistan has prohibited the banks and Development Finance Institutions (DFIs) from financing premium charged by the car dealers or investors over and above the ex-factory tax paid price set by the car manufacturers.
This step taken by the State Bank will not only discourage the speculators and curb the menace of premium or called on-money but will also facilitate the genuine buyers of new cars.
Earlier the State Bank had restricted the banks/DFIs, under their mortgage/house financing schemes, from extending financing solely for the purchase of plots or land.
Similarly, with a view to curb speculative activities on shares, the State Bank had also prescribed limits on bank/DFI's investments in shares listed on the Stock Exchanges.
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