SBP issues Permission for Commencement of Business to Export-Import Bank of Pakistan
Export-Import Bank of Pakistan is about the 64th institution in the world of its nature
KARACHI ( Web News )
The State Bank of Pakistan (sbp) has granted its “Permission for Commencement of Business” to the Export-Import Bank of Pakistan (EXIM), paving the way for the bank to commence its operations in support of exports from Pakistan. At this time, the bank will focus on issuing Trade Credit Insurance products to exporters and commercial banks. In addition, the bank has been given an important role related to the transition the transition of the Export Finance Scheme of the State Bank of Pakistan (SBP).
Export-Import Bank of Pakistan is about the 64th institution in the world of its nature. EXIM will be staffed by the best trade financiers & underwriters in the country, and over a period become the key risk management institution for trade finance in the country, by implementing well established and tested products to protect the balance sheets of exporters and banks, create securities, and enable banks to undertake transaction-based lending. It will be able to do the foregoing, and more, by attracting contingent risk capital from the international market, and thereby creating a level playing field for Pakistan based exporters with the international competition.
The commencement of business is the first step in this direction. The Minister of Finance, Revenue & Economic Affairs, Dr. Shamshad Akhtar, recognising the importance of this policy institution has taken a keen interest in the bank and met with its management to emphasise the need to have a strong foundation based on solid governance & competence. The Minister’s direct interest and involvement ensured that various awaited approvals were timely granted, paving the way for the operationalisation of the bank.
Since then, two Board Meetings and two Board Committee meetings (Risk Management Committee and Finance & Procurement Committee) have been held making important decisions related to the bank’s operationalisation. SBP, as the regulator of the bank, and its technical team & leadership took a very pragmatic approach in assessing EXIM’s operational model and its products and has now provided the requisite approval to commence business as per the request of the bank.
The bank will be gradually scaling up the business as it hires the talent it seeks and secures several other legislative approvals necessary for scaling up its operations. However, exporters seem eager for EXIM products as world trade becomes more competitive.