Welcome To EXIM Bank of Pakistan

The global landscape for exporters has become increasingly competitive and more risky after recent financial crisis. Governments are responding to this challenge by enhancing domestic enterprises’ international trade competitiveness with the provision of financial and related non-financial services. These include facilities to promote and support the export of goods/services and business activities that earn, or support the earning of foreign exchange, protection against risk of default by buyers and facilities to support import and other domestic businesses that help save foreign exchange and strengthen competitive edge.

Pakistani exporters are in competition with exporters form countries like China, India, Bangladesh, and Malaysia. All these countries have ECAs / EXIM Banks facilitating exports by providing services that safeguard exporters against non-payment risk by overseas buyers, thereby boosting exporters’ confidence in their business expansion in the existing as well as emerging markets. Unfortunately in Pakistan there is no such facility available for the exporters. Its absence is an impediment in realizing full potential of exports. Exporters in Pakistan are thus at a comparative disadvantage in terms of payment risk and are subject to losing contracts to competitors who are able to provide better credit terms duly supported by their EXIM Banks and ECAs.

In the budget speech of FY 2014-15. Finance Minister announced establishment of EXIM Bank for facilitating the exporters of Pakistan to enhance export credit, reduce cost of borrowing for exporters and help reduce their risks through export credit guarantees and insurance facilities. In this backdrop, the Bank will be committed to respond to the government’s export policy and serve as the government’s financial arm for promoting international trade thereby contributing to economic development. EXIM Bank will be the first bank in Pakistan to offer protection against the risks of non-payment by buyers or their representative banks.

Export-Import Bank of Pakistan is envisaged as a state-owned financial institution under the regulatory supervision of State Bank of Pakistan. It will be established as a Development Finance Institution (DFI) with an initial capital of Rs 10 billion to promote and support exports and imports.

EXIM Bank will provide a comprehensive range of services to the exporters, ranging from pre to post-shipment working capital financing for both corporate and SMEs plus export credit insurance benefits to enhance domestic exporters' confidence in exploring new markets. For medium and long-term credit, EXIM Bank will also make available credit facilities for project expansion or establishing new businesses. To meet its credit expansion requirements, the Bank can borrow from local or overseas financial institutions, as well as issue short-term or long-term financial instruments for sale to financial institutions and the general public.

One primary mission of EXIM Bank will be to boost the value of Pakistan’s international trade by targeting exporters with strong potential for export expansion especially by promoting engineering industry, strengthening SME exporters, as well as facilitating new exporters and export items. The Bank will provide support to SMEs through short-term and long-term credit facilities such as working capital loan for exports, loans for capacity expansion, guarantee services, and export credit insurance services. The objective is to bridge the the gap caused by inadequate financial support from commercial banks or other financial institutions, and bolster SMEs’ confidence in starting or expanding their businesses in the existing or new markets.