ISLAMABAD: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has said that revival of Export and Import (Exim) Bank is government’s top priority because this bank’s role is crucial for the export-led economic growth.
Briefing the Senate’s Standing Committee on Finance in Islamabad on Monday, he said that the Exim Bank will play a vital role in enhancing country’s exports during the next two to three years.
He said the country was moving on path of economic stability due to government’s prudent policies. Policy rate is slashed by 9 basis points. Kibor, which affects the industry come down below 12 percent resulted in brining borrowing cost to half, said the minister, adding that impacts would be visible in next 2-3 months.
Shamshad highlights importance of Exim Bank
The finance minister also asked for agreeing upon charter of economy to move forward.
Admitting rise in chicken prices in the country, minister said that administrative measures and enforcement are critical as middlemen were taking advantage resisting to reduce the prices of essential goods despite a decline in international commodities prices, transportation cost and oil prices.
The Committee decided to quarterly review the progress of EXIM Bank.
Standing committee chairman Senator Salim Mandviwalla, said that Exim Bank’s chief executive officer has not been appointed since two-three years and the bank’s board was constituted after two years. He said “Exim Bank’s state of affairs is very fragile.”
The finance minister further said that Pakistan is committed to follow the IMF load programme because the growth under this programme becomes organized and strong. “Three years ago accelerator was applied on the growth after which the balance of payments pressure multiplied. Now we will not press the accelerators no matter how intense the pressure would”, he added.
Exim Bank representative informed that as per SBA signed by government of Pakistan with IMF, it was agreed that SBP refinance scheme would be phased out in five years i.e. fiscal year 2024-28. EXIM Bank met IMF structural benchmark for transitioning exports refinance facility from SBP t Exim Bank with the first year target surpassing at 168 percent.
EXIM Bank is currently managing Rs421 billion export finance scheme limits. EXIM Bank implemented the EFS enhancement scheme of Rs230 billion approved by Prime Minister comprising of 40 percent allocation to SMEs and 60 percent to corporates.
While discussing the matter of imposing FED on EVs, FBR officials informed that the matter has been resolved and Federal Excise Duty will not be charged on EVs, as per the opinion of the Ministry of Law and Justice.
The committee was briefed by the AGPR on the reasons for non-compliance with the orders of the Chairman of the Senate of Pakistan regarding the pay fixation of the newly promoted Private Secretaries and Director Staff of the Senate Secretariat.
AGPR officials informed that the referred policy mentioned by the Senate Secretariat no longer exists, and therefore the matter will be decided by the Court. The committee was briefed on the Pakistan Remittances Initiative (PRI).
Mandviwalla highlighted that it was introduced to enhance national remittances, and under this initiative, the SBP bears the fee on behalf of the remitter.
The SBP officials informed that remittances have increased from $7 to $8 billion in 2009 to $30 billion and expected to reach $35 billion by the end of current fiscal year. The SBP has paid around Rs86 billion to the banks in lieu of charges last year. The Committee recommended that the SBP provide details of the amount paid so far in lieu of charges, along with the year-wise details of remittances.
Copyright Business Recorder, 2025
Comments
Comments are closed for this article.