Pakistan’s Commerce Minister Jam Kamal Khan has urged the Export-Import (EXIM) Bank of Pakistan to expand access to export credit insurance and financing to help local businesses enter international markets, manage payment risks and increase their overseas sales. The minister emphasised the importance of extending financial support beyond established exporters, with particular attention to small enterprises, emerging businesses and first-time exporters seeking opportunities in global markets. He said access to capital, practical business guidance and appropriate risk protection could help smaller producers develop their operations and build sustainable export businesses. The discussions focused on strengthening the role of export financing institutions in supporting businesses as they navigate international trade requirements and pursue new commercial opportunities.
The minister conveyed these priorities during a meeting with EXIM Bank Chief Executive Officer Shahbaz H. Syed at his office. Commerce Secretary Jawad Paul also attended the meeting, where participants discussed ways to improve the availability of financial products for exporters and strengthen cooperation between public institutions and commercial lenders. Jam Kamal stressed that export support mechanisms should be accessible to businesses with the potential to enter overseas markets but which may lack the financial resources, experience or risk management arrangements available to larger companies. The discussions highlighted the importance of ensuring that smaller exporters can obtain suitable financing and insurance protection as they establish relationships with international buyers and expand their operations.
To improve support for exporters in overseas markets, Jam Kamal proposed closer coordination between EXIM Bank and Pakistan’s trade and investment officers stationed abroad. Such cooperation could help identify potential buyers, highlight commercial opportunities, facilitate business contacts and provide exporters with assistance in their target markets. The minister also encouraged EXIM Bank to explore partnerships with international export credit agencies and financial institutions to broaden the range of financing options available to Pakistani businesses. Stronger institutional links could help exporters navigate market-specific risks while connecting them with potential customers and financial service providers. The discussions placed particular emphasis on creating practical support arrangements that allow businesses to move from initial export opportunities to sustained participation in international trade.
During the meeting, Shahbaz H. Syed explained the role of EXIM Bank’s export credit insurance in protecting exporters against specified commercial and political risks associated with overseas transactions. These risks can include a foreign buyer’s failure to make payment and covered events that prevent payments or fund transfers from being completed in the destination market. According to the bank’s explanation, coverage can extend to as much as 90% of the insured risk, subject to the applicable terms and assessment, while exporters retain a share of the exposure. The assessment process considers the overseas buyer’s creditworthiness and the risk profile of the destination market. This approach can also allow new exporters to seek insurance protection, subject to the bank’s evaluation and relevant conditions, rather than restricting such products exclusively to businesses with an established export record.
The EXIM Bank chief executive also highlighted the potential role of commercial banks in distributing export financing products and supporting businesses that have insured overseas receivables. Where accepted by lenders and permitted under applicable regulatory requirements, insured receivables may help exporters obtain financing against amounts expected from international buyers. This could provide businesses with working capital to manage production costs, fulfil orders and maintain operations while waiting for payments from overseas customers. Commerce Secretary Jawad Paul emphasised the importance of connecting insurance protection with practical financing arrangements, noting the need for cooperation among EXIM Bank, commercial banks and other financial institutions. The meeting considered how these partnerships could help exporters use insured transactions to access working capital and expand their business activities.
The participants also discussed the financing requirements of small enterprises that supply goods and services to larger exporting companies. Supporting these businesses may require a combination of short-term working capital and longer-term investment to increase production capacity. While working capital can help companies purchase inputs, pay operating expenses and complete orders, longer-term financing can support improvements in production facilities and the ability to handle larger volumes of business. The discussion reflected the importance of considering the wider supply chain when designing export support measures, as smaller suppliers can play an important role in helping established exporters fulfil international orders. Better access to suitable financing could help these businesses strengthen their operations and participate more effectively in export-related economic activity.
Jam Kamal also urged EXIM Bank to take a more active role in trade exhibitions, including FoodAg, to improve awareness of available insurance and financing products among exporters and international buyers. The meeting discussed organising dedicated technical sessions where businesses could receive explanations of the bank’s products, understand eligibility requirements and learn how insurance and financing arrangements could support their transactions. The minister also stressed that exhibition programmes should allocate sufficient time for business-to-business meetings, allowing participating companies to establish contacts and explore commercial agreements. Options for inviting the prime minister to participate in an opening or closing session were also discussed for further consideration.
The discussions underline the importance of linking export promotion with accessible financing, insurance protection and practical assistance for businesses entering international markets. For Pakistan’s smaller producers and first-time exporters, the availability of appropriate financial products can influence their ability to accept overseas orders, manage payment uncertainty and maintain the working capital needed to fulfil contracts. Closer cooperation between EXIM Bank, commercial lenders, international financial institutions and Pakistan’s trade representatives abroad could help address some of these requirements. The meeting focused on expanding existing support mechanisms and improving coordination, although the measures discussed will depend on the development and implementation of suitable arrangements by the institutions involved.
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