EXIM Bank Pakistan TAYABA BATOOL

Introduction EXIM Bank Pakistan aimed at reducing cost of borrowing for exporting sectors on ST, MT, AND LT basis And helping reduce the risks of exporters through export credit guarantees and insurance facilities.

Historical Background Export Credit Guarantee Scheme introduced in March 1962 to underwrite the exporter’s financial risk to the extent of 75 per cent of loss sustained on commercial risks and 85 per cent on the political risks In 2000, Asian Development Bank established Pakistan Export Finance Guarantee Agency

Historical Background (cont.) Trade Policy highlighted limitations of available Export Finance Scheme Need for an EXIM Bank, with built-in credit insurance system, was felt Work started on setting up of EXIM Bank immediately On the advice of the ADB it was decided that instead of a new institution such as EXIM Bank the ADB-assisted Pakistan Export Finance Guarantee Agency (PEFGA) to be converted into an Export Credit Agency (ECA) with fresh injection of capital and change in the ownership structure

EXIM Bank Pakistan (establishment in process) In the Strategic Trade Policy Framework (STPF) , the Government of Pakistan approved the establishment of EXIM Bank Subsequently the Finance Minister was pleased to announce the establishment of EXIM bank in the Budget Speech for Financial Year Authorized Capital will be Rs. 10 billion Initial paid-up capital will be Rs. 6 billion The Bank will be established as a DFI

Currently Available Credit Facilities Export Finance Scheme for ST credit provided by banks and refinanced by the State Bank MT and LT financing for purchase of machinery Credit facility for export sales on down payment in foreign currency