ISLAMABAD: The federal government is all set to approve, in principle, enactment of the Export-Import Bank of Pakistan (EXIMBP) Act, 2020, official sources told Business Recorder.
The Export-Import Bank of Pakistan (EXIMBP) has been set up by the Government of Pakistan for the promotion, expansion and diversification of international trade by providing credit, guarantee and insurance products as well as ancillary services to exporters and importers, in the form of a statutory corporation that has the backing and support of the Government of Pakistan as is customary for export credit agencies to achieve their desired potential and objectives.
The Bank was declared a Development Finance Institution (DFI) June 09, 2015 and incorporated with SECP under the Companies Ordinance, 1984 as a company limited by shares on June 11, 2015. The authorized capital of the Bank is Rs. 100 billion while paid up capital is Rs. 10 billion. So far, the Government has released Rs. 7 billion out of total paid up capital of Rs. 10 billion. On the request of GoP in 2018, the Asian Development Bank (ADB) approved a Technical Assistance (TA) Grant of USD 500,000 to support operationalisation of EXIM Bank of Pakistan. International Financial Consulting Limited (IFCL), Canada will provide deliverables under the said TA. One of the components of the TA was to draft EXIM Bank of Pakistan Act giving necessary powers to the Bank to be able to deliver on its mandate by providing necessary financing and insurance products to the exporters of the country and promoting Foreign Direct Investment (FDI).
Under the aegis of Stakeholders' Steering Committee comprising officials of Finance Division, Commerce Division, State Bank of Pakistan (SBP) and Securities & Exchange Commission of Pakistan (SECP) and with the support of international legal experts of IFCL Canada, the EXIM Bank of Pakistan Act titled "The Export-Import Bank of Pakistan Act, 2020" has been drafted .
The Finance Ministry has proposed that the Cabinet may grant in principle approval for enactment of the Export-Import Bank of Pakistan Act, 2020 in terms of Rule 16 (1) (a) of Rules of Business 1973.
Copyright Business Recorder, 2020
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