In a significant development, Pakistan’s Export-Import Bank (EXIM) was formally inaugurated by Dr Shamshad Akhtar, the Caretaker Minister for Finance, Revenue, and Economic Affairs. This move marks a pivotal moment in reshaping Pakistan’s trade finance landscape and fostering economic growth.
Global Impact of EXIM Institutions
Dr Akhtar, during the inaugural ceremony, highlighted the global impact of institutions like EXIM, citing that they disbursed an impressive $2.5 trillion in trade finance last year, benefiting exports across more than 60 countries. This underscores the crucial role such institutions play on the global economic stage.
Diverse Portfolio and Export Credit Loans
Emphasizing the diverse portfolio of products offered by EXIM, the finance minister particularly underscored the significance of export credit loans. These loans provide competitive-rate financing to exporters, contributing to their global competitiveness.
As EXIM Pakistan grows, it is poised to become a key player in promoting trade finance through a well-structured institutional framework and effective policies.
Strengthening Export Policy Frameworks
Dr Akhtar stressed the need for streamlining export policy frameworks to contribute to the sustainability of the balance of payments, addressing historical challenges related to low levels of export earnings. EXIM, in her vision, will contribute significantly to managing export finance schemes in compliance with legal constraints.
Empowering Exporters: Lending, Credit Insurance, and Guarantee Services
EXIM’s role in enhancing Pakistani exporters’ global competitiveness cannot be overstated. Through services like lending, credit insurance, and guarantee services, the bank aims to empower exporters. Notably, EXIM will introduce export insurance products in Pakistan to protect exporters against credit default risks, enabling them to participate in international infrastructure projects.
Balancing Growth, Risk Diversification, and Industry Sustainability
The finance minister emphasized the importance of balancing export growth, risk diversification, and industry sustainability in EXIM’s operations. She highlighted the gradual management of export finance schemes in compliance with legal constraints.
Collaboration with the State Bank of Pakistan (SBP)
Acknowledging the collaboration between EXIM and the State Bank of Pakistan (SBP), Dr Akhtar emphasized their partnership until the SBP smoothly phases out of export finance operations. This collaboration ensures a seamless transition and adherence to international practices in disbursing global trade finance.