Efforts to operationalise EXIM Bank expedited

KARACHI: The government has expedited the efforts to start business operations of EXIM Bank to encourage exporters to enhance foreign trade, a State Bank of Pakistan (SBP) official said on Monday.

According to the updates pouring in from the concerned quarters, the authorities are looking to fill up the main slots of the bank with the cream-of-the-crop technocrats, who will be subsequently tasked with brainstorming and formulating the bank’s future line of action. 

“The core team led by CEO (acting) deputed from central bank is working with Asian Development Bank (ADB) and Islamic Development Bank (IDB) for technical assistance to operationalise the bank,” Abid Qamar, chief spokesman at the SBP, told The News via email. 

 “Currently, a roadmap is being developed with the help of all stakeholders to operationalise the bank within shortest possible time and also prepare a ten-year business plan to meet the financial and other requirements of exporters along with banks’ operational model.” Qamar added that the hiring for a permanent CEO is also in process.   

Headquartered in Lahore, EXIM Bank is officially incorporated with Securities and Exchange Commission of Pakistan (SECP) under Section 32 of the Companies Ordinance of 1984 on June 11, 2015. 

The establishment of the bank was announced in the budget 2015/16. As per information available on the EXIM Bank’s official website, the objective of the bank is 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. 

The bank will also provide guarantees, insurance and other supporting services. The bank’s board of directors, CEO on acting basis and company secretary has been designated.

In the federal budget 2015/16, the government allocated Rs10 billion for setting up the bank of which Rs7 billion as equity funds for the bank has already been released and Rs3 billion would be released in next fiscal year. 

Analysts say the foreign trade and exports remains on top agenda of the incumbent PML-N government being the driving forces for the economy. “However, a frequent sluggish exports’ growth is not a positive sign for the country’s underlying balance of payments position and economic growth,” one of the analysts said.    Pakistan’s exports fell 2.29 percent to $16.918 billion in 11 months (July-April) of the current fiscal year.