The EXIM Bank of Pakistan will become operational by June 2021.
Sources told Propakistani here on Thursday that the CEO EXIM Bank of Pakistan disclosed this during the 34th meeting of the Auto Industry Development Committee held last month at the Board of Investment.
The agenda of the meeting was the support for export of vehicles, parts and components-EXIM Bank.
During the meeting, CEO EXIM Bank of Pakistan said that their bank will be operational by June 2021. Currently, the bank is hiring, RFP for headquarters is submitted and resources are being arranged. Their first priority is to make the bank operational. He said that the EXIM bank is different than commercial banks.
He added that the role of their bank will be to promote expansion and diversification of the export base of the country by providing short term export credit facilities and long term financing facilities for setting up export oriented projects.
He explained that if the buyer gets bankrupt than balance sheet of the exporters get affected. Therefore, their bank would provide a facility that 80 percent of the receivable are protected for exporters. He said that their bank will partner with commercial banks. Furthermore, as a government institute EXIM bank will create partnership with World Bank, Asian Development Bank etc. World Bank and Asian Bank will assist EXIM bank and it will support industry. Export credit will be provided to the industry and it will change face of exports.
Chairman Engineering Development Board (EDB) informed the meeting that the services sector industry do not have enough support. EXIM bank is an institution to help their exports. COO, Lucky Motor Corporation said that it seems as government worthy efforts to enhance exports. He questioned that whether EXIM Bank will provide first initiative fundings to buyer. He also asked that will EXIM Bank support expansion plans including expansion of their firm in other countries.
CEO EXIM Bank stated that, “Yes it is part of their long term objective.” However, he explained that number of insurances are not yet final but it will be better than commercial pricing model.
About expansion of projects, CEO EXIM Bank informed the meeting that it depends on returns however it is part of their mandate, sources added.