On January 6, 2025, Muhammad Aurangzeb, the Honorable Federal Minister for Finance and Revenue, provided an insightful briefing to the Senate’s Standing Committee on Finance, shedding light on the newly operationalized EXIM Bank and its pivotal role in Pakistan’s export-led economic growth. During the session, the Finance Minister emphasized the importance of EXIM Bank in boosting the country’s economic trajectory, particularly in the context of enhancing export performance, which is critical for Pakistan’s long-term economic stability and development.
The Minister underscored the government’s unwavering commitment to strengthening EXIM Bank’s capabilities to drive economic prosperity. He highlighted that the operationalization of EXIM Bank represents a significant step forward in Pakistan’s financial landscape, with the institution positioned to play a key role in fostering export growth, improving financial access for exporters, and providing the necessary support to ensure sustainable economic progress.
Mr. Abdul Hafeez, the Acting CEO and President of EXIM Bank, also addressed the Standing Committee, providing a detailed overview of the bank’s operations and achievements since its inception. He noted that EXIM Bank has made substantial progress in a relatively short period, including the successful and timely transition of the Export Refinance Facility from the State Bank of Pakistan (SBP) to EXIM Bank. This transition is a major milestone, marking the bank’s readiness to take on a larger role in facilitating exports and providing financial solutions tailored to the needs of exporters across the country.
Mr. Hafeez further informed the Committee that EXIM Bank had not only met but exceeded its targets for the year, demonstrating the institution’s growing efficiency and effectiveness in supporting Pakistan’s export sector. The bank’s efforts in streamlining financing options and offering specialized services to exporters have been instrumental in improving the accessibility of funds for businesses engaged in international trade.
The Finance Minister’s statement reinforces the government’s strategic focus on enhancing export-led growth as a core element of Pakistan’s economic plan. Exports are seen as a vital engine for economic development, and EXIM Bank’s role in facilitating export transactions and providing financial support is expected to accelerate Pakistan’s entry into global markets, boost foreign exchange earnings, and reduce the trade deficit. By focusing on export-oriented growth, Pakistan aims to build a more resilient and diversified economy, less reliant on imports and external debt.
EXIM Bank’s key functions include offering financial products such as trade credit, export guarantees, and financing for exporters, thereby reducing the risks associated with international trade. By supporting Pakistan’s export sector through these services, the bank aims to create a conducive environment for businesses to expand their market reach and enhance their competitiveness on the global stage.
With EXIM Bank now fully operational, it is poised to become a cornerstone of Pakistan’s export strategy, contributing to the country’s economic resilience and long-term prosperity. The government’s commitment to strengthening the bank’s framework and operations will be crucial in ensuring that Pakistan’s export potential is fully realized, paving the way for a stronger and more sustainable economy.
As Pakistan continues to navigate economic challenges, the role of institutions like EXIM Bank in driving export growth and fostering financial inclusion for exporters cannot be overstated. With continued support and investment, EXIM Bank is expected to play a leading role in shaping Pakistan’s economic future and positioning the country as a competitive player in the global market.