Exim Bank of Pakistan formally launched to spur exports

The government on Thursday formally launched the Export-Import Bank of Pakistan (EXIM Bank) with an aim at spurring the international trade and the ultimate goal of boosting the country’s exports, reported 24NewsHD TV channel.

This was announced by Caretaker Finance Minister Dr Shamshad Akhtar at a ceremony held in Islamabad on Thursday.

Terming the launch of Exim Bank a positive development for the country, the finance minister said that the bank would help improve the exports of Pakistan and facilitate the exporters and importers.

Shamshad Akhtar said Exim Bank launch will widen the government's vision to boost exports and attract investment in Pakistan.

Addressing the ceremony, the minister highlighted Bank’s imminent operational focus on providing crucial trade credit insurance products to exporters and commercial banks.

Shamshad Akhtar further indicated the integral role that Exim Bank will play in shaping the nation's trade finance infrastructure, emphasizing its paramount importance in the economic development and promotion of both imports and exports. "The government recognizes the immense potential of initiatives like Exim Bank in advancing economic development and bolstering trade relationships for Pakistan," she remarked.

With a core emphasis on safeguarding the financial stability of exporters, Exim Bank's functions will be executed by competitive professionals, offering credit insurance and guarantee services to Pakistani exporters, the minister said, adding the prime objective of this initiative is to protect the balance sheets of exporters and pave the way for a level-playing field through national ECAs or EXIM support.

One of the flagship offerings of Exim Bank involves tailored export credit insurance products, precisely designed to prevent defaults on foreign receivables, ensuring exporters' financial resilience and easing smoother trade operations.

Moreover, the establishment of Exim Bank showed not only a substantial impetus to the export industry but also a catalyst for job creation.

The availability of export credit and trade finance facilities is anticipated to kindle economic growth, fostering job opportunities, and bolster the employment sector within Pakistan.

The introduction of the Export Finance Scheme (EFS), administered by Exim Bank and monitored by the State Bank, is aimed to further fortify the export sector.

This initiative is geared towards providing financial support to Pakistani manufacturers, enabling them to forge stronger global connections and enhance their competitiveness in international markets.

Globally, Exim institutions played a crucial role in international trade and economic development, with approximately $2.5 trillion in trade finance provided last year, significantly boosting exports to more than sixty countries, she informed.

Notably, the success of Vietnam's Exim Bank after its launch in 2012 serves as a promising precedent, signalling the potentially transformative impact of Exim Bank's establishment on Pakistan's economic landscape, she further added.