ISLAMABAD: Federal Minister for Commerce Jam Kamal Khan called for wider access to export credit insurance and financing to help Pakistani exporters enter new markets, manage payment risks and expand their businesses, with particular attention to small enterprises and first-time exporters.
Kamal made the remarks during a meeting with EXIM Bank Chief Executive Officer Shahbaz H. Syed at his office, according to a statement issued Friday. Secretary Commerce Jawad Paul also attended.
Kamal emphasized that export support should reach emerging businesses and smaller producers seeking to enter international markets. He said access to capital, practical guidance and appropriate risk protection could help these enterprises develop into established exporters.
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.
Syed told the meeting that EXIM Bank's export credit insurance protects exporters against specified commercial and political risks associated with overseas transactions, including buyer default and covered events that prevent payment or the transfer of funds from destination markets.
The CEO said coverage could extend to up to 90% of the insured risk, subject to applicable terms and assessment, with exporters retaining a share of the exposure. He said the assessment focuses on the overseas buyer's creditworthiness and the destination market's risk profile, allowing new exporters to seek coverage as well.
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.
Jawad Paul highlighted the importance of connecting insurance protection with practical financing arrangements. The discussion considered 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 examined 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.
Kamal encouraged EXIM Bank to participate more actively in trade exhibitions, including FoodAg, where Pakistani exporters and international buyers could receive guidance on insurance and financing options. Participants discussed dedicated technical sessions to explain available products and facilitate engagement with the bank.
The minister stressed that exhibition activities should preserve sufficient time for business-to-business meetings and commercial engagement. Options for inviting the Prime Minister to an opening or closing session were also discussed for further consideration.
