In a bid to promote international trade, the Senate session approved on Friday a bill to establish the Export Import (EXIM) Bank of Pakistan.

“The government of Pakistan took the decision with a mandate to provide innovative products to support the growth of exports and export-led foreign direct investment by mitigating related risks,” said a statement by the EXIM Bank of Pakistan.

“EXIM Bank of Pakistan will promote, expand and diversify the export base of the country.”

The motion to pass the bill titled 'the Export Import Bank of Pakistan Bill 2022' was moved by Ayesha Ghous, Minister of State for Finance and Revenue. The bill was earlier passed by the National Assembly on June 9, 2022. The enactment of EXIM bank will help improve Pakistan’s balance of payment position which is one of the pressing issues for the national economy, added the statement.

"There are over 60 agencies in the world, providing similar products to their industry, and this is the first time, the government of Pakistan is introducing such products in the country to provide an enabling environment and level-playing field to exporters."

The bank would achieve its objectives by providing export credit insurance facilities and long-term financing facilities for setting up export-oriented and import-substitution projects.

NA passes Export-Import Bank of Pakistan Bill, 2022

It will also provide guarantees and other supporting services.

EXIM Bank is headquartered in Islamabad and plans to branch out in all provincial headquarters as well as export hubs of the country, it says.

Its business model is based on partnerships with commercial banks/ international banks and multilateral development agencies as well as Export Credit Agencies around the world. Renowned multilateral agencies like the Asian Development Bank and the Islamic Development Bank continue to provide technical support to the EXIM Bank, the statement added.