Export credit insurance scheme urged

KARACHI: The Union of Small and Medium Enterprises (Unisame) has urged the Ministry of Commerce to set up a low premium export credit guarantee insurance scheme to boost exports to the Third World countries, a statement said on Monday.

Unisame President Zulfikar Thaver said that export credit guarantee insurance would enable exporters to get cover for exports to the Third World countries on low premium, it added.

“There is a huge market for traditional and non-traditional goods in the Third World countries, but banks are not inclined to finance the SME sector due to the lack of risk management expertise,” Thaver said.

Other countries have provided the facility to their exporters and increased their exports manifold, he said, adding, “Pakistan needs to offer this facility to the exporters to tap the Third World countries’ market.” Unisame also underlined the importance of an SME Export Promotion Bureau, which could educate the sector on exports and global marketing.