US EXIM Bank eyes lending in energy sector

KARACHI: Chairman and President of the Export-Import Bank of the United States (EXIM) Fred P Hochberg said the bank is keen to help Pakistan overcome its chronic energy crisis.

“The U.S. wants to help Pakistan resolve its energy crisis for improved manufacturing and jobs creation,” Hochberg told reporters in Karachi late on Tuesday.

He said Pakistan economy has improved, which resulted in the improvement in its credit rating. 

EXIM chief said Pakistan’s private sector has strong growth opportunities.

“The private sector growth prospects are bright as the credit rating of the country has improved,” he added.

He said the U.S. EXIM Bank has been present in Pakistan for the past two decades and during the period the bank issued loans worth $2 billion.

The major lending of the bank is in energy, railway and aviation, especially for aircraft purchase by the Pakistan International Airlines. 

“The airline previously purchased eight aircraft and (loan) amount of five was repaid,” Hochberg said.

He said the bank is increasing its presence in the country by lending to other sectors of the economy. Dozens of companies, belonging to oil, energy and textile sectors, showed interest in acquiring loans.

Hochberg said the bank will now offer long-term financing for public sector projects in the country.  

“The EXIM Bank is here to compete for Pakistani business, and is ready to partner with Pakistan to reach its development goals,” the bank chief said. “The country’s growing economy, expanding middle class, and access to South and Central Asia all create tremendous opportunities for investment—and we want to be part of that.”

He said the U.S. is one of the Pakistan’s largest trading partners as well as one of its largest sources of investment. “I look forward to building on this already strong and productive relationship.”