KARACHI: Mian Zahid Hussain, President Pakistan Businessmen and Intellectuals Forum and All Karachi Industrial Alliance, Chairman National Business Group Pakistan and Chairman Policy Advisory Board FPCCI, has welcomed the Rs3 billion export-insurance risk pool for small- and medium-size enterprises established through the Export Development Fund and EXIM Bank of Pakistan, alongside expanded export financing.
He appreciated Prime Minister Shehbaz Sharif’s endorsement and the efforts of Finance Minister Muhammad Aurangzeb, EDF and EXIM Bank, saying these measures would mitigate payment risks and increase access to procure business capital.
Mian Zahid Hussain noted that Pakistan’s merchandise exports declined 5.97 percent to $30.1 billion in FY2025–26, while imports reached $69.6 billion and the trade deficit widened 21.57 percent to $39.5 billion.
Remittances of $41.6 billion from overseas Pakistanis provided vital foreign-exchange support, helping offset the trade gap.
He said this dependence underlined the need for greater value addition, wider participation in exports and access to new markets.
He welcomed the 50 percent increase in the Export Finance Scheme envelope from Rs1 trillion to Rs1.5 trillion for FY2026–27.
He particularly appreciated the earmarking of Rs300 billion for SME exporters, agricultural SMEs and new borrowers on the Prime Minister’s directives.
Eligible businesses can access this financing through banks and financial institutions.
He said timely availability would help increase production and fulfil overseas orders, provided banks offer clear guidance and efficient processing.
Mian Zahid Hussain also welcomed Rs350 billion in financing lines under the Long-Term Export Growth Financing Facility.
He said the facility would support new machinery, locally manufactured and imported equipment, modernisation of existing plant and machinery, improvements in production and replacement of outdated equipment.
Industrial modernisation could enable more environmentally sustainable production and help Pakistani exporters meet international buyers’ environmental requirements.
He said smaller businesses often hesitate to accept orders from new buyers because non-payment can severely disrupt wages, supplier payments and production activities.
The Rs3 billion collective insurance risk pool will protect against non-payment risks, while financing schemes would address working-capital requirements. He welcomed the reinsurance agreement between EXIM Bank and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), together with the HBL–EXIM Bank Master Policy, as complementary steps towards strengthening export-related risk protection and financing.
Mian Zahid Hussain noted that SME financing increased 30.5 percent to Rs901.6 billion by June 2026, while the number of borrowing businesses rose 15.18 percent to 318,585. He stressed that these gains should translate into higher national exports.
New manufacturers should receive practical opportunities to benefit, particularly businesses capable of converting local agricultural and industrial resources into competitive export products.
He said EXIM Bank’s EFS Digital Portal connects the institution with financial institutions and could support faster, coordinated processing for exporters seeking financing.
Its effectiveness should be reflected in timely decisions and smoother service delivery. Banks should make application requirements, financing terms and processing timelines readily available.
Mian Zahid Hussain also appreciated the earmarking of EDF’s Rs24 billion for business facilitation, research, skills development and competitiveness.
Under the new approach, further infrastructure expenditure would give way to measures supporting exporters’ capabilities.
He recommended prioritising product improvement, certification, packaging, market intelligence and demand-linked training.
He said financing facilities should be accompanied by sustained efforts to retain GSP+ status through fulfilment of relevant commitments, reduce energy costs, expedite tax refunds and improve overall business environment.
Copyright Business Recorder, 2026
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