Pakistan’s Caretaker Minister for Finance, Dr. Shamshad Akhtar, officially inaugurated the Export-Import Bank of Pakistan (EXIM) on Thursday. This move is aimed at fortifying external trade, attracting investments, and fostering broader economic growth in the country.
Addressing the inauguration ceremony, Dr. Akhtar described the operationalization of EXIM as a proud moment and a significant milestone. She expressed confidence that it would bring substantial enhancements to the banking and trade finance landscape in Pakistan.
Highlighting the global impact of institutions like EXIM, the Finance Minister noted that they disbursed a staggering $2.5 trillion in trade finance last year. She emphasized the importance of export credit loans, which provide competitive-rate financing to exporters. Dr. Akhtar underlined EXIM’s potential to enhance the competitiveness of Pakistani exporters globally through services such as lending, credit insurance, and guarantee services.
The minister outlined the diverse portfolio of products offered by EXIM, with a particular focus on export credit loans, crucial for providing competitive-rate financing to exporters. As EXIM Pakistan expands, Dr. Akhtar expects it to play a crucial role in promoting trade finance through a well-structured institutional framework and effective policies.
She stressed the need to streamline export policy frameworks to contribute to the sustainability of the balance of payments, addressing historical challenges related to low levels of export earnings. Dr. Akhtar sees EXIM as a key player in managing export finance schemes gradually, in compliance with legal constraints.
Notably, EXIM will introduce export insurance products in Pakistan to protect exporters against credit default risks, empowering them to participate in international infrastructure projects. Dr. Akhtar highlighted the importance of balancing export growth, risk diversification, and industry sustainability in EXIM’s operations.
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. She also stressed the significance of EXIM adhering to international practices while playing a crucial role in disbursing global trade finance.
