EXIM Bank set to revolutionise Pakistan’s export sector

ISLAMABAD: The inauguration of the Export-Import Bank of Pakistan (EXIM) marks a significant stride towards realising the government’s objectives of amplifying exports and fostering investment in the country.

Caretaker Finance Minister Dr Shamshad Akhtar, speaking at the launch ceremony, underscored the pivotal role of EXIM in facilitating the nation’s trade landscape.

Highlighting its immediate focus, Dr Shamshad Akhtar highlighted the provision of essential trade credit insurance products to exporters and commercial banks as a key operational aspect.

She elaborated on the integral role that the EXIM Bank’s model is poised to play in shaping the trade and finance infrastructure of the nation. This underscores its paramount importance in driving economic development and promoting both imports and exports.

Minister Finance inaugurated long awaited Exim Bank today. pic.twitter.com/qJvLRwbqML

— Ministry of Finance, Government of Pakistan (@Financegovpk) December 21, 2023

The Finance Minister acknowledged the government’s recognition of initiatives like EXIM Bank, emphasising their potential to advance economic development and strengthen trade relationships for Pakistan.

EXIM Bank, with a core commitment to ensuring the financial stability of exporters, will be executed by competitive professionals, offering credit insurance and guarantee services to Pakistani exporters.

The primary objective of this initiative is to shield the balance sheets of exporters and establish a level playing field through national Export Credit Agencies (ECAs) or EXIM support.

EXIM Bank’s flagship offering includes customised export credit insurance products designed to prevent defaults on foreign receivables, ensuring financial resilience for exporters and facilitating smoother trade operations.

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Furthermore, the establishment of EXIM Bank is not only a significant boost for the export industry but also a catalyst for job creation. The availability of export credit and trade finance facilities is expected to fuel economic growth, create job opportunities, and strengthen the employment sector in Pakistan.

The introduction of the Export Finance Scheme (EFS), administered by EXIM Bank and monitored by the State Bank, aims to reinforce the export sector by providing financial support to Pakistani manufacturers.

This support enables them to establish stronger global connections and enhance competitiveness in international markets.

Globally, EXIM institutions have played a vital role in international trade and economic development, providing approximately $2.5 trillion in trade finance last year and significantly boosting exports to more than sixty countries.

Dr Shamshad Akhtar highlighted the success of Vietnam’s Exim Bank, launched in 2012, as a promising precedent, indicating the transformative impact that EXIM Bank could have on Pakistan’s economic landscape.

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