ISLAMABAD, Thursday, 21st of December, 2023: Export-Import Bank of Pakistan (EXIM Bank), established by the Government of Pakistan (G.o.P.) through the Export-Import Bank of Pakistan Act, 2022 (XXII of 2022), after being granted Permission for Commencement of Business by the State Bank of Pakistan was officially inaugurated by the Hon’ble Minister for Finance, Revenue & Economic Affairs, Dr. Shamshad Akhtar, in the presence of Finance Secretary, Mr. Imdad Ullah Bosal, Special Secretary Commerce, Ms. Sarah Saeed, Chairman – EXIM Bank, Mr. Naeem Iqbal, C.E.O. & President – EXIM Bank, Mr. Irfan Bukhari, and other esteemed officials from the Ministry of Finance, Ministry of Commerce, State Bank of Pakistan, EXIM Bank, the bank’s first onboarded clients, and other stakeholders, gathered in-person at EXIM Bank’s Head Office in Islamabad and virtually.

The inauguration ceremony began with Dr. Shamshad Akhtar, Mr. Imdad Ullah Bosal and Mr. Irfan Bukhari addressing the attendees and highlighting the need and advantages of an official Export Credit Agency for Pakistan and its importance in the country’s efforts towards achieving a positive trade balance, through facilitating exporters to increase the country’s exports and exploring & facilitating import substitution projects. The bank’s commencement of operations was announced by Dr. Shamshad Akhtar followed by the handing-over of the first batch of Trade Credit Insurance Policies to the bank’s clients who . who attended in person as well as virtually. The bank has issued Comprehensive Short-term Policies (C.S.T.P.) for major players in the Textile, I.T. & Cement sectors, along with Bank Master Policies (B.M.P.) and Documentary Credit Insurance Policies (DCIP) for two leading commercial banks under its Trade Credit Insurance product line.

EXIM Bank’s Trade Credit Insurance programmes allow Pakistani exporters and their banks to offer open terms to international buyers & their banks, where letters of credit (L/Cs) or prepayment had previously been the only safe way of doing business. Through these policies exporters and their banks can insure their businesses against international non-payments of receivables due to any of the multiple reasons covered under these policies, with EXIM Bank covering the Loss incurred up to the values promised under each policy. C.S.T.P., as one of the offered policies, and the one opted for by these initial exporters, protects the entire portfolio of sales made on credit terms and open-account basis against losses due to non-payments.

The bank also offers Specific Transaction Policy (S.T.P.), aimed at the exporter’s protection against losses due to non-payment by the international buyer in a specific transaction. EXIM Bank’s Trade Credit Insurance product line also facilitates commercial banks through its Documentary Credit Insurance Policy (D.C.I.P.) and Bank Master Policy (B.M.P.). D.C.I.P. will be aimed at protecting the (exporter’s) conforming bank against non-payment by the (importer’s) issuing bank, while B.M.P. will protect the (exporter’s) financing bank against non-payment of its exporter’s international receivables from the covered importers.

On December the Economic Coordination Committee (“ECC”) of the Cabinet assented to the subsidy payment under the phase-out of the Export Finance Scheme (EFS). Under the revised modalities, commercial Banks will used its own liquidity and may claim subsidy from Government of Pakistan through EXIM Bank. The Bank of Punjab as the pioneering first bank, has disbursed PKR 100 million under the revised scheme.

The bank has been met with a welcoming response by the Pakistani exporters who had been looking to balance the scales of international competition by improving their competitiveness in global trade through such financially liberating products protecting their Balance Sheets and increasing their business’ risk appetites.

SEOSEO