Comprehensive Short-Term Policy (CSTP)

How it works?

CSTP export credit insurance obliges the exporter to insure export receivables to all foreign buyers as verified and agreed by EXIM Bank.

The main aim of CSTP is to protect the exporter’s entire portfolio of sales made on credit terms and open account basis against losses due to the failure of buyers to pay for goods and services.

Insurance Cover:

  • Pakistani Exporter is maintaining export (purchase) contracts with multiple buyers in various countries.
  • Exporter submits proposal for CSTP policy detailing countries of export, name of buyers, annual turnover, list of goods to be exported, financial statements of buyers if available, payment terms etc.
  • After positively assessing the creditworthiness of the respective buyer, EXIM Bank prepares a quotation confirming the list of insured buyers in respective countries, insurance credit limits for each buyer, premium percentage etc.
  • Upon Exporter’s acceptance, EXIM Bank will issue confirmation of cover under CSTP detailing the individual buyer’s credit limit, risk disclosures and accepted payment terms for the buyer.


Working Capital Facility from the Bank:

  • The Exporter will have the option to negotiate short-term working capital line from Commercial Bank against subject export receivables and offer EXIM Bank’s credit insurance policy as a security (i.e. instead of hypothecation charge on receivables).
  • Upon successful offer from the Bank, EXIM Bank will issue the ‘Letter of Endorsement’ in favour of the Bank as ‘Loss Payee”.

Pakistani exporters of all sizes.

For Exporters:

  • Protecting against non-payment by foreign buyers caused by buyer insolvency, bankruptcy, and protracted default.
  • Allows Pakistani exporters to provide more attractive financing terms than potential competitors or at least be at par with international competitors.
  • Helping to grow business and expand market presence by facilitating the development of business overseas.
  • Enhancing credit risk management by leveraging the insurer’s expertise related to performance/payment data on buyers.

For Banks:

  • CSTP Export Credit Insurance may be accepted as collateral for working capital financing or in accounts receivable financing. In this case the exporters will need to endorse the policy in favor of lending Bank as loss payee.
  • Relatively liquid security.

For Foreign Buyers:

  • More attractive payment terms and cost effective in comparison with Bank guarantees.
  • You submit a credit proposal.
  • We prepare a quotation.
  • You submit individual buyers to be included in the cover.
  • We run a credit check on your buyers.
  • You are now covered.
  • Declaration.
  • Claim Payments.