Karachi, December 22, 2023 – In a significant development for the small and medium enterprises (SMEs) in Pakistan, the Union of Small and Medium Enterprises (UNISAME) has played a pivotal role in facilitating the operationalization of the Export-Import Bank of Pakistan (Exim Bank).
The move is anticipated to bring about a positive transformation in the landscape of SMEs, fostering competitiveness and promoting both exports and imports.
President of UNISAME, Zulfikar Thaver, expressed his satisfaction with the achievement, noting that in every meeting at the State Bank of Pakistan, he consistently raised the urgent need for an Exim Bank tailored to the requirements of SMEs. Thaver sees the operationalization of Exim Bank as a milestone that will significantly benefit SMEs, providing them with the necessary support to become more competitive in the global market.
Thaver emphasized the potential impact of a well-functioning Exim Bank in Pakistan, stating, “If the Exim Bank of Pakistan performs as per its definition and according to international standards, it will play an important role in enhancing exports and also facilitate much-needed imports of essential raw materials.” This dual focus on exports and imports is crucial for SMEs, allowing them to participate actively in international trade.
The Exim Bank is expected to offer export credit guarantees and other performance guarantees to overseas importers, both governments and private entities. These guarantees can significantly boost contractual exports by instilling confidence in foreign buyers. Additionally, the ability to manage escrow accounts and provide financing for both exports and imports positions the Exim Bank as a comprehensive financial solution for SMEs engaged in international trade.
UNISAME Council members took the opportunity to commend Shamshad Akhtar, the caretaker finance minister, for her efforts and positive measures in making the Exim Bank operational. The role of the caretaker finance minister in facilitating the establishment of the Exim Bank has been crucial in realizing the long-standing demand of the SME sector.
The positive reception from UNISAME reflects the high expectations placed on the Exim Bank to be a catalyst for economic growth and development. As SMEs form a significant portion of Pakistan’s economic landscape, the effective functioning of the Exim Bank is seen as a vital step towards empowering these enterprises and contributing to the overall economic prosperity of the country.
In conclusion, the operationalization of the Exim Bank marks a crucial milestone for SMEs in Pakistan, and UNISAME’s role in facilitating this development underscores the importance of collaborative efforts in addressing the unique needs of the SME sector. As the Exim Bank begins its operations, it is poised to become a key player in fostering a more vibrant and competitive environment for SMEs in both the domestic and international markets.
