The Export-Import Bank of Pakistan (EXIMBP) will commence operations by the end of the current fiscal year. This development is as per the exclusive documents available with ProPakistani.
According to the business and operations plan, the EXIMBP is ready to start its commercial operations with its headquarter in Islamabad, and regional offices in Karachi, Lahore, Peshawar, Faisalabad, and Gwadar.
The EXIM Bank Bill 2021, which was passed last week by the National Assembly Standing Committee on Finance, envisages a coordination agency to lead the import and export lending operations in the country by establishing a market intelligence system.
The business plan details that the bank will start commercial operations by June once the EXIMBP Bill, 2021, is passed by the Parliament.
Every Pakistani bank is required to cooperate in issuing loans and market intelligence, as per the plan. Whenever a letter of credit is issued to any exporter or importer under this system, the details will be shared with the EXIM Bank. The target is to increase Pakistan’s exports to $57 billion within the next five years, and the bank will supervise the market intelligence system.
The EXIM Bank has been designated as the official Export Credit Agency of the country to be formed through an Act of the Parliament, and it has also been declared a ‘Development Financial Institution’ (DFI) under section 3A of the Banking Companies Ordinance, 1962.
The document read, “The vision of the bank is to contribute towards positive trade balance of Pakistan, as the bank is the strongest pillar for export growth in an economy, and to support exporters with facilities such as export credit guarantees, financing for working capital and capital goods, project financing together with bid bonds.”
As per the operational plan, the bank will roll out operations in a phased manner, and the insurance products will come into the market under Phase-I. Phase-II will involve the issuance of lending products, and Islamic products will be launched in Phase-III.
The document revealed that the market reporting and intelligence system will work in line with the production of goods and through supply chain operations. Every import and exports based operation will report to the EXIM Bank to facilitate importers and exporters, solve liquidity issues, and issue letters of credit to the importers. The proposed bill will cover these operations and will be applicable to all bank and line agencies.
Under the bank’s rules, all federal and provincial institutions will be required to cooperate with the EXIM Bank. As per the documents, the enactment of the EXIMBP will increase the export target, which is envisaged to reach $46 billion by 2024-25 and reach the $57 billion mark by 2026.
