EXIM Bank Launch Will Help Boost Export Industry: Finance Minister

Caretaker Finance Minister Dr. Shamshad Akhtar congratulated the management on the launch of EXIM Bank in Pakistan and said it would help boost the export industry. Expressing the government’s appreciation for such initiatives at the bank’s grand opening ceremony on Thursday, the Finance Minister highlighted the importance of Exim Bank as a new venture to promote the export sector and the critical role it would play in shaping the country’s trade finance infrastructure, aligning with the government’s vision to attract investments. The launch of Exim Bank is poised to support Pakistani exporters by providing essential services such as credit insurance and guarantee services. This move is crucial as it fills the trade gap and export finance market in Pakistan. The bank’s services are expected to shield exporters from the risk of non-payment and help them avoid defaults on foreign receivables, the minister said. She underscored the potential for job creation and the strengthening of global value chains as a result of the availability of export credit and trade finance facilities. The minister also announced the introduction of the Export Finance Scheme (EFS), which would now be administered by the Exim Bank instead of the State Bank of Pakistan. The central bank will continue to monitor the EFS scheme and formulate rules for eligibility and disbursement, she added. Globally, Exim Banks have played a pivotal role in promoting international trade and economic development. Dr. Shamshad Akhtar said these specialized financial institutions provided various products and services to importers, exporters, and investors, contributing to the provision of about $2.5 trillion in trade finance worldwide last year alone. Drawing inspiration from other countries, citing Vietnam’s experience since the launch of its Exim Bank in 2012, the Caretaker Finance Minister was optimistic about the positive impact an Exim Bank would have on Pakistan.