"The Ministry of Commerce has proposed establishing EXIM bank to facilitate the exporters in boosting their exports and make them competitive with regional competitors like India and Bangladesh in new STPF-2012-2015," Director General Trade Policy Safdar Sohail told APP.

He was of the view that establishment of EXIM bank was need of the hour to bring our trade system at par with the international standards.

"All the regional countries, including India, Bangladesh and China etc have EXIM banks but Pakistan is the only country lacking this facility," he said adding the formation of such bank would help boost trade of the country and facilitate the traders.

He said that the ministry has already finalized the STPF which would be announced once the Prime Minister, who was scheduled to attend the briefing at Ministry of Commerce, gives approval.

The official, however, did not disclosed how much funds have been proposed by the ministry for the establishment of the bank saying, "once the government approves the proposal of establishing the bank, then the ministry would work out other formalities including funding etc."

It is pertinent to mention here that the government is all set to launch STPF 2012-2015 during first week of September, with special focus on export development initiatives, launching of Export Import Bank ( EXIM Bank) and measures to cope with new trade challenges.

"The Policy has been devised keeping in view the financial restraints of the government to make it applicable and implementable," the official said. The new trade policy is focused on addressing the new challenges and has been developed while keeping in view the financial limitations of the government.

The focus of the new trade policy is Export Development Initiative for which Rs.60 billion have been proposed for the next three years (2012-15), he said adding that this fund was lowest as compared to the other regional countries.

The sources were of the view that if the government did not provide this fund, it would be unjust for the export industry adding that at a time when the trade deficit had already reached to $21 billion, this support is needed to help exports grow.

Copyright APP (Associated Press of Pakistan), 2012