Commerce minister pushes EXIM Bank on exporter support

Federal Commerce Minister Jam Kamal Khan pressed the Export-Import (EXIM) Bank to offer broader support to exporters, Mettis Global reported, citing an official press release. During a meeting with EXIM Bank chief executive Shahbaz H. Syed, he asked that help reach smaller producers and first-time shippers who want to sell abroad, helping them manage payment risks and grow. Commerce Secretary Jawad Paul also took part in the discussion at the minister's office.

Syed explained that the bank's insurance policies protect exporters against certain commercial and political risks on overseas deals, such as buyer defaults and events that hold up payments or fund transfers coming out of destination markets. Cover can reach 90% of the insured risk, subject to terms and an assessment of the foreign buyer and the destination market, and this assessment also allows newcomers to apply. He said commercial banks could act as partners, since insured receivables may help exporters obtain loans, subject to lenders' conditions and the regulatory framework.

Jam Kamal also proposed closer work between EXIM Bank and Pakistan's overseas trade and investment officers to identify opportunities and support exporters in destination markets. The meeting also weighed the financing needs of small suppliers and the case for longer-term investment in production capacity. He further asked the bank to play a bigger part at trade exhibitions such as FoodAg, with dedicated technical sessions and time for business-to-business talks.