ISLAMABAD: (Finance Reporter) – The Export-Import Bank of Pakistan (Pak Exim) and the Export Development Fund (EDF) have introduced a new insurance scheme to protect small and medium-sized exporters from financial losses caused by non-payment from overseas buyers.
Under the initiative, SME exporters will receive insurance coverage if foreign buyers fail to pay for goods after shipments are made. The scheme is designed to reduce payment-related risks and give smaller exporters greater confidence when doing business internationally.
Pak Exim and EDF will jointly establish a risk pool of around Rs3 billion to support the insurance facility. The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) will also provide international backing for the initiative.
Officials expect the scheme to help SMEs accept larger export orders, work with new international buyers and explore markets that may previously have been considered too risky.
To improve access to the facility, Pak Exim has also established offices in Sialkot and Faisalabad. These offices will provide exporters with information and guidance on the insurance programme and help SMEs understand the process for obtaining coverage.
The initiative is expected to strengthen Pakistan’s SME export sector by encouraging higher production and creating additional employment opportunities. Officials also anticipate that increased exports will contribute to the country’s foreign exchange earnings.
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