Exporters require wider access to credit insurance

Federal Minister for Commerce Jam Kamal Khan has urged broader access to export credit insurance and financing, according to The Express Tribune, so that Pakistani exporters can open new overseas markets and handle payment risks. He placed particular emphasis on small companies and first-time exporters during a meeting with Exim Bank CEO Shahbaz H Syed.

Syed said the bank's cover shields exporters from certain commercial and political hazards on overseas deals, including buyer non-payment and blocked fund transfers from destination countries. Coverage can reach 90% of the insured risk, subject to terms and assessment, with exporters keeping a share of the exposure, and the assessment looks at the buyer's creditworthiness and the destination market's risk profile. New exporters can also seek coverage.

Commercial banks were identified as possible partners for distributing the insurance, and insured receivables could support financing, subject to bank requirements and regulations. Commerce Secretary Jawad Paul stressed linking insurance with practical financing, while participants also discussed support for small suppliers to larger exporters and building production capacity over the longer term. The minister further asked Exim Bank to take a more active part in trade fairs such as FoodAg, where exporters and foreign buyers could get advice on cover and credit.