Federal Minister for Commerce Jam Kamal Khan has called for wider access to export credit insurance and financing to help Pakistani exporters enter new markets, manage payment risks and expand their business, with particular attention to small enterprises and first-time exporters.
The minister was speaking during a meeting with Exim Bank CEO Shahbaz H. Syed in Islamabad on Friday. Khan emphasised that export support should reach emerging businesses and smaller producers seeking to enter international markets, noting that access to capital, practical guidance and appropriate risk protection could help these enterprises become established exporters.
Export credit insurance that covers buyer default and political risk
Shahbaz H. Syed explained that Exim Bank’s export credit insurance protects exporters from specified commercial and political risks tied to overseas transactions, including buyer default and events that prevent payments or the transfer of funds from destination markets.
Coverage can extend up to 90 percent of the insured risk, subject to applicable terms and assessment, with exporters retaining a share of the exposure. The assessment focuses on the overseas buyer’s creditworthiness and the destination market’s risk profile, and new exporters can also seek coverage.
Syed highlighted the role of commercial banks as potential partners and distribution channels for export credit insurance. He said insured export receivables could support access to financing, subject to banks’ requirements and the applicable regulatory framework.
Linking insurance to working capital
Secretary Commerce Jawad Paul, who attended the meeting, underscored the importance of connecting insurance protection with practical financing arrangements. The discussion examined how cooperation among Exim Bank, commercial banks and other financial institutions could help exporters use insured transactions to obtain working capital and pursue business growth.
The meeting also looked at the financing needs of small enterprises, including businesses supplying larger exporters, and the importance of longer-term investment in production capacity alongside short-term working capital support.
The minister proposed closer coordination between Exim Bank and Pakistan’s trade and investment officers abroad to identify opportunities, facilitate business contacts and support exporters in destination markets. He also encouraged the bank to explore cooperation with international export credit agencies and financial institutions to broaden financing opportunities.
Jam Kamal further encouraged Exim Bank to take part more actively in trade exhibitions, including FoodAg, where Pakistani exporters and international buyers could receive guidance on insurance and financing options.
Frequently asked questions
What did the commerce minister ask Exim Bank to do?
Widen access to export credit insurance and financing, especially for SMEs and first-time exporters, and explore cooperation with international export credit agencies.
How much risk does Exim Bank’s insurance cover?
Up to 90 percent of the insured risk, subject to terms and assessment, with the exporter retaining a share of the exposure.
Who attended the meeting?
Commerce Minister Jam Kamal Khan, Exim Bank CEO Shahbaz H. Syed and Secretary Commerce Jawad Paul.
The original report appeared in The Express Tribune.
