A new risk sharing pool has been established, that will provide export credit insurance to Small and Medium Enterprise (SME) exporters in Pakistan, reported the News Pakistan.
The Export Import Bank of Pakistan (Pak EXIM) and the Export Development Fund (EDF) have jointly established an export insurance risk sharing pool to protect Pakistani SME exporters against non-payment by international buyers caused by commercial risks like buyer insolvency and political risks like government actions or transfer restrictions in the buyer’s country.
Under the master export insurance framework agreement, Pak EXIM will act as pool manager, underwriter and policy issuer, while EDF and Pak EXIM will be the joint capital providers. Commercial banks and development finance institutions will act as an alternate delivery channel.
The facility will offer two products, including comprehensive short-term policy directly to eligible SME exporters, and Bbnk master policy issued to banks/DFIs against the risk of non-payment by international buyers of their funded SME exporters.
Pak EXIM believes that with the new export credit insurance product, expected to be launched on the 1 November 2026, exporters can negotiate better terms, accept larger orders, and enter new markets with confidence, while becoming more bankable for bank financing.