EXIM Bank of Pakistan: A Catalyst for Economic Growth

The EXIM Bank of Pakistan is a state-owned bank that plays a crucial role in promoting exports and imports of the country. Established in 1995, it has been a catalyst for economic growth in Pakistan.

By providing financing to exporters and importers, the EXIM Bank has helped increase the country's foreign exchange earnings and reduced its trade deficit. The bank's efforts have also led to the growth of various industries in Pakistan.

One of the key achievements of the EXIM Bank is its success in increasing Pakistan's exports. According to the bank's data, the country's exports have seen a significant increase over the years, with a growth rate of over 10% in some years.

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The EXIM Bank of Pakistan is a vital institution that plays a crucial role in supporting the country's exporters. Its primary objectives are designed to level the playing field and facilitate access to global markets.

The bank offers lending, credit insurance, and guarantee services to safeguard the balance sheets of exporters and reduce their risk exposure. This is a game-changer for many small and medium-sized enterprises that struggle to compete with larger players.

One of the key objectives of EXIM Bank is to enhance the global competitiveness of Pakistani exports. By providing protection against lending and credit default risks of foreign receivables, the bank helps exporters to feel more secure and confident in their dealings.

To give you an idea of the scale, similar institutions around the world disbursed a staggering $2.5 trillion in trade finance last year. This highlights the importance of EXIM Bank's role in facilitating international trade.

Here are the specific objectives of EXIM Bank:

The PCMEA Exports Enhancement initiative is a significant step towards increasing Pakistan's exports. The Pakistan Carpet Manufacturers and Exporters Association (PCMEA) has welcomed the government's initiative to set up the first Export-Import Bank.

The availability of credit insurance and guarantee services will solve a major problem faced by exporters. PCMEA officials believe this will help them compete with regional competitors.

The governments of regional countries are giving concessions and relief to their exporters, which is why they have consistent growth in their exports. PCMEA officials hope the EXIM Bank will help Pakistan's exporters access new international markets.

The PCMEA has expressed hope that the EXIM Bank will help increase exports and provide access to new international markets.

The Economic Coordination Committee of Pakistan's federal cabinet has approved the phasing out of long-term financing to the country's Export-Import Bank of Pakistan, or Exim Bank.

This decision was made after Finance Minister Muhammad Aurangzeb presided over a meeting of the ECC to review proposals and summaries with regard to various departments and ministries.

The ECC decided to phase out the State Bank of Pakistan's long-term financing facility (LTFF) to Exim Bank, with an allocation of PKR 1.001 billion through a Technical Supplementary Grant to meet the LTFF subsidy requirement for the new portfolio for FY 2025.

The LTFF portfolio of PKR 330 billion would be phased out to the Exim Bank.

Pakistan's Prime Minister Shehbaz Sharif has repeatedly said his government is prioritizing exports to ensure sustainable economic growth for the country's fragile economy.

The government aims to increase Pakistan's exports to $60 billion in five years.

Pakistan is trying to stabilize its economy through sustainable reforms agreed with the International Monetary Fund (IMF) in exchange for a financial bailout program.

EXIM Bank of Pakistan has been actively engaging in international partnerships to strengthen its position in the global market. The bank has signed a Memorandum of Understanding (MoU) with its Turkish counterpart during the official visit of Turkish President Recep Tayyip Erdogan to Pakistan.

This MoU aims to strengthen cooperation between the two Export Credit Agencies (ECAs) and focuses on project financing in third countries through joint ventures, joint research initiatives, and knowledge exchange.

The partnership will leverage mutual strengths to support export sector growth, enhancing trade and investment opportunities. Çagatay Özden, Head of Department for Asia and Pacific Countries at Türkiye’s Ministry of Trade, expressed confidence in the partnership's potential.

Abdul Hafeez, Acting CEO and President of EXIM Bank of Pakistan, welcomed the collaboration, highlighting its significance in diversifying Pakistan’s exports and benefiting from Türkiye’s extensive expertise.