Govt calls for wider export credit protection, financing access for small exporters

Federal Commerce Minister Jam Kamal Khan has urged wider access to export credit insurance and financing so that Pakistani exporters can enter fresh markets and handle payment risk. He placed particular weight on small businesses and first-time exporters, according to Business Recorder, which quoted a statement delivered on Friday by Secretary Commerce Jawad Paul.

At a meeting with EXIM Bank Chief Executive Shahbaz H. Syed, the minister asked the lender to back emerging firms and smaller producers that aim to grow into established exporters. He also suggested closer work between the bank and Pakistan's trade and investment officers overseas, plus talks with foreign export credit bodies and lenders to widen funding options.

Syed explained that the bank's cover shields exporters from specified commercial and political hazards on overseas deals, including buyer default and events that block payments or fund transfers from abroad. Protection can extend to 90% of the covered risk, depending on conditions and evaluation, while exporters bear a share of the exposure. Evaluation looks at how creditworthy the foreign purchaser is and how risky the destination is, which lets new exporters seek coverage too. Commercial banks were presented as possible partners and sales channels, and insured receivables could support borrowing, subject to lenders' conditions and the rules in force.