ISLAMABAD: The Bank of Punjab (BOP) becomes the first bank to execute a transaction for Export Import Bank of Pakistan (EXIM Bank) under its newly-launched Export Finance Scheme (EFS) Facility.
Under the facility, EXIM Bank will channel the GOP interest rate subsidy to banks to offer low-cost financing to exporters. The facility will eventually replace the existing Export Finance Facilities offered by State Bank of Pakistan.
The Bank of Punjab, being true to its values of being at the fore front of offering innovative and market leading products to its clients, has become the first bank to offer low cost export financing to its clients using the facility.
The ceremony took place in Islamabad and was attended by the caretaker Finance Minister, Dr Shamshad Akhtar, and the Governor of the State Bank of Pakistan, Jameel Ahmed.
Senior representatives from the Government of Pakistan, the State Bank of Pakistan, and leading export houses of Pakistan were also present.
Syed Irfan Bukhari, President EXIM Bank signed the agreement whereas BOP was represented by Asim Jahangir Seth, Head Corporate Banking & Muhammad Saqib Sajjad, Head FIs & Correspondent Banking.
BOP also signed the first Master Insurance Policy of the EXIM Bank for the promotion of exports in the country. After regulatory approvals, the facility could be used as a collateral to offer financing to eligible exporters. This will open Pakistan banks to accepting globally accepted insurance policies as collateral.
Recognizing the BOP support to EXIM, Syed Ifran Bukhari expressed, “The BOP team, under the leadership of Zafar sahib, has proven to be a steadfast and supportive ally to our bank. Today marks a significant milestone as they not only become the first bank to adopt our Bank Master Policy but also demonstrate their belief in the product’s utility, lending it credibility.
Furthermore, BOP has taken a pioneering step by being the first to sign a transaction in support of the government’s reforms program, which involves the transfer of administration for the Export Finance Schemes from the SBP to EXIM”
Asim Jahangir said, “BOP remains true to its values of offering innovative and market leading products to our exporters. We will use this facility to offer low cost financing solutions to our clients. This will go a long way in promoting exports from our country.”
Copyright Business Recorder, 2023