Rs3bn Export Insurance Risk Pool for SMEs Welcomed

Business leaders have welcomed the establishment of a Rs3 billion export-insurance risk pool for small and medium-sized enterprises (SMEs) through the Export Development Fund (EDF) and EXIM Bank of Pakistan, along with expanded export financing facilities.

 

Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum and All Karachi Industrial Alliance, said the measures could help reduce payment risks for SME exporters and improve their access to working capital.

 

He noted that Pakistan’s merchandise exports fell 5.97% to $30.1 billion in FY2025–26, while imports rose to $69.6 billion, pushing the trade deficit up 21.57% to $39.5 billion. Overseas remittances of $41.6 billion provided important support to the country’s external position.

 

The Export Finance Scheme’s funding limit has also been increased by 50% to Rs1.5 trillion for FY2026–27, including Rs300 billion for SME exporters, agricultural SMEs and new borrowers.

 

In addition, Rs350 billion has been allocated under the Long-Term Export Growth Financing Facility to support machinery purchases, industrial modernisation, production upgrades and replacement of outdated equipment.

 

The Rs3 billion insurance pool is expected to protect smaller exporters against buyer non-payment, while financing facilities can help businesses meet working-capital needs and fulfil overseas orders.

 

Mian Zahid also highlighted the EXIM Bank–ICIEC reinsurance arrangement and the HBL–EXIM Bank Master Policy as steps toward strengthening export-related risk coverage.

 

He urged banks to simplify application procedures and provide clear information on financing requirements, terms and processing timelines. He also called for greater focus on product quality, certification, packaging, market intelligence and skills development to improve Pakistan’s export competitiveness.

 

He further stressed the need to reduce energy costs, accelerate tax refunds and maintain GSP+ compliance to support sustainable export growth.