ISLAMABAD: Senate session on Friday approved the bill to establish the Export Import Bank of Pakistan for the promotion of international trade. The motion to pass the bill titled “the Export Import Bank of Pakistan Bill 2022” was moved by Ayesha Ghous, Minister of State for Finance and Revenue.

The bill for EXIM Bank was earlier passed by National Assembly on June 9th, 2022. The enactment of EXIM bank will help improve Pakistan’s balance of payment position which is one of the pressing issues for the national economy.

The Government of Pakistan made a policy decision to set up EXIM Bank for Pakistan, with a mandate to provide innovative products to support the growth of exports and export led foreign direct investment by mitigating related risks. EXIM Bank of Pakistan will promote, expand and diversify the export base of the country.

There are over 60 such agencies in the world, providing similar products to their industry, and this is the first time, the Government of Pakistan is introducing such products in Pakistan, providing an enabling environment and level-playing field to Pakistan based exporters.

EXIM Bank will achieve its objectives by providing Export Credit insurance facilities and long-term financing facilities for setting up export oriented and import substitution projects. EXIM Bank will also provide guarantees and other supporting services.

EXIM Bank isheadquartered in Islamabad and plans to branch out in all provincial headquarters as well as export hubs of the country.

Its business model is based on partnerships with commercial banks/ international banks and multilateral development agencies as well as Export Credit Agencies around the world.

Copyright Business Recorder, 2022