Well, industry benchmark interest rate is 14%, 12% is a discount rate on which state bank lends money to commercial banks, whereas commercial banks lends money to a general borrower on 14%, 12%+ 2%( cushion for commercial banks). this was the question which interviewer rephrased me for 4 times.

CRR = cash reserve ratio, which every commercial bank needs to maintain at state bank at the end of the day, in case if commercial bank fails to maintain it, it has to borrow with another bank on Kibor rate and do some kind of repurchase agreement. the current CRR is 7-8% as per state bank of Pakistan's website.

SLR = statutory liquidity ratio[/B], which every commercial bank needs to maintain at SBP, the instrument use in SLR is treasury bill( T-bill) and the current rate is 18-19%.