Deal signed to facilitate imports into Pakistan

ADB, Australian company join hands to share trade risk.

ISLAMABAD:

The Asian Development Bank (ADB) and Australia’s Export Finance and Insurance Corporation (EFIC) have signed a trade facilitation agreement which will help Pakistan’s economy, says the Australian High Commission in Islamabad.

According to the agreement, inked in Sydney on Tuesday, EFIC will share the risk that ADB, through its trade finance programme, takes in guaranteeing letters of credit for exports of Australian goods to Bangladesh, Pakistan and Sri Lanka in order to make it easier to import crucial Australian goods.

This will help companies which struggle to get trade finance to buy key inputs for export production or end-products from overseas, including from Australia. A lack of trade finance holds back business and means less job creation, restraining economic growth for regional economies.

“It will greatly assist Pakistani and Australian companies to do business, which in turn is good for the economy. Trade creates jobs, raises standards of living and promotes sustainable economic growth,” said Australia’s High Commissioner to Pakistan Tim George.

Australia is a major exporter to Pakistan. In 2009-10, oilseeds, fertilisers and coal were among biggest exports to Pakistan which totalled more than A$610 million. Australia and Pakistan have a Joint Trade Committee to discuss opportunities to expand bilateral trade and investment and Australia is due to host a meeting of the committee this year.

EFIC, the Australian government’s export credit agency, provides finance and insurance solutions to help Australian exporters overcome financial barriers while growing their business overseas.

Published in The Express Tribune, May 4^th, 2011.