The Exim Bank of Pakistan on Saturday formally started its operations after the Senate approved and ratified the bill seeking its establishment for the promotion of international trade. On Friday, the Senate approved the Export-Import Bank of Pakistan Bill following a motion moved by State Minister for Finance and Revenue Ayesha Ghous.
The bill, which was tabled in 2020, was earlier passed by the National Assembly on June 9. In fact, the enactment of Exim Bank will help improve the balance of payments position. The Exim Bank of Pakistan is mandated to provide innovative products to support the growth of exports. Furthermore, support foreign direct investment by mitigating related risks. It will provide an enabling environment and level-playing field to Pakistan-based exporters.
There are over 60 such agencies in the world, providing similar products to their industry. The Asian Development Bank and the Islamic Development Bank continue to provide technical support to the Exim Bank of Pakistan. Its business model is based on partnerships with:
- Commercial banks/international banks
- Multilateral development agencies
- Export credit agencies around the world.
“Approval from the upper house (Senate) has allowed the bank to operate formally under the bill, legal framework, rules and regulations. It is very encouraging for the country’s exporters and importers,” comments an industrialist. Moreover, Exim Bank of Pakistan is a developmental as well as a financial institution. The federal government fully owned it. In order to grow and diversify the country’s exports and assist in the implementation of import substitution plans.