Commerce Minister Calls for Wider Export Credit Cover for Small Exporters
ISLAMABAD: Federal Minister for Commerce Jam Kamal Khan has called for expanding access to export credit insurance and financing to help Pakistani exporters enter new markets and manage payment risks, with a focus on small and first-time exporters.
The minister was speaking during a meeting with EXIM Bank Chief Executive Officer Shahbaz H. Syed at his office. Secretary Commerce Jawad Paul was also present.
Khan said export support should reach emerging businesses and smaller producers seeking to enter international markets. He noted that access to capital, practical guidance and risk protection could help these enterprises grow into established exporters.
He proposed closer coordination between EXIM Bank and Pakistan’s trade and investment officers posted 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.
Briefing the meeting, Syed said EXIM Bank’s export credit insurance protects exporters against specified commercial and political risks, including buyer default and events that prevent payment or transfer of funds from destination markets.
He said coverage could extend up to 90 per cent of the insured risk, subject to 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, which allows new exporters to seek coverage.
Syed said commercial banks could act as partners and distribution channels for export credit insurance, adding that insured export receivables could support access to financing, subject to banks’ requirements and regulatory framework.
Secretary Commerce Jawad Paul highlighted the need to link insurance protection with practical financing arrangements. The discussion considered how cooperation among EXIM Bank, commercial banks and other institutions could help exporters use insured transactions to obtain working capital.
The meeting also examined the financing needs of small enterprises, including businesses supplying larger exporters, and the importance of long-term investment in production capacity.
Khan encouraged EXIM Bank to participate more actively in trade exhibitions, including FoodAg, to provide guidance on insurance and financing options, and stressed that sufficient time should be preserved for business-to-business meetings.