ISLAMABAD: The National Assembly today (Thursday) would pass “The Export-Import Bank of Pakistan Bill, 2021” to fulfil the conditionality of the International Monetary Fund (IMF) without referring to the relevant Standing Committee of the house, it is learnt. According to the sources, after the passage of the bill, it would be tabled in the Senate on the same day for its passage.
They said that the government is in a hurry for the passage of this bill to fulfil the conditionality of the IMF. Under this proposed law, the Export-Import Bank of Pakistan will be established. The Bank will obtain reinsurances from any foreign agencies or nay insurances companies in or outside Pakistan. The bank will also provide its own or with other financial institutions or insurance providers in or outside Pakistan, trade financing, trade credit insurance, and equity participation.
According to clause 7 of the bill related to borrowing, “The Bank may, for the purpose of the bank’s business, borrow in local or foreign currency on such terms and conditions as may be prescribed by the Board and subject to the provision of other laws, from the following sources, namely- (a) the federal government, (b) international, bilateral and multilateral agencies, (c) financial institutions, (d) the public by issuing, on its or through a wholly-owned or controlled subsidy, securities in or outside Pakistan; or (e) through such other means as may be permitted under the prudential regulations or is otherwise approved by State Bank.”
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According to the objects and reasons of the bill, “the government of Pakistan has taken several initiatives for the promotion and development of international trade as well as export-oriented industries and import substitution in the national economic interest.”
“In continuation of its efforts and reforms, and in line with best international practices, the government of Pakistan is now seeking to establish the Export-Import Bank of Pakistan, as the national export credit agency for the promotion, expansion and diversification of international trade by providing credit, guarantee and insurance products as well as ancillary services to exporters and Imports, in the form of a statutory corporation that has the backing and support of the government of Pakistan as is customary for export credit agencies to achieve their desired potential and objectives.”
The clause 5 (2) of the bill described as, “(a) that all assets rights, powers, authorities, privileges and all properties, moveable and immovable, cash and bank balances, reserve funds, investments and all other interests and rights in, or arising out of such properties and all, or part of, debts, liabilities and obligations whatever kind of the existing Export-Import Bank of Pakistan Limited subsisting immediately before the date of the order shall stand transferred to and vest in the Bank: (b) that all the contracts entered into, or the rights, licences, approvals and consents acquired and all matters and things to be done by, with or for the existing Export-Import Bank of Pakistan Limited before the date of the order shall be deemed to have been incurred, entered into, acquired or engage to be done by, with or for the Bank, as the case may be; (c) that all suits and other legal proceedings instituted by or against the exiting Export-Import Bank of Pakistan Limited before the date of the order shall be deemed to be suits and proceedings instituted by or against the Bank as the case may be and be deal with accordingly.”
Copyright Business Recorder, 2022
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