Export Import bank for traders on the cards

Proposal to be included in Strategic Trade Policy Framework 2012-2015.

ISLAMABAD: The establishment of an Export Import bank (EXIM) will be one of the main features of the upcoming three-year Strategic Trade Policy Framework (STPF 2012-2015), which is likely to be announced next week.

“The Ministry of Commerce has proposed establishing an EXIM bank in the new STPF-2012-2015 to facilitate exporters and make them competitive with regional competitors, like India and Bangladesh,” Director General Trade Policy Safdar Sohail has told APP. He said the establishment of an EXIM bank was a need of the hour, if Pakistan wishes to bring its trade system at par with international standards.

“All regional countries – including India, Bangladesh and China – have EXIM banks; Pakistan is the only country without this facility,” he said. He said the formation of such a bank will help boost trade and facilitate traders. He further revealed that the ministry has already finalised the STPF, and will formally announce it once the Prime Minister – who is scheduled to attend a STPF briefing at the Ministry of Commerce – gives his approval.

The official, however, did not disclose how much funds have been proposed by the ministry for the establishment of the bank. “Once the government approves the proposal of establishing the bank, the ministry will then work out other formalities, including funding, etc,” he said.

The government is set to introduce STPF 2012-2015 during the first week of September, with a special focus on export development initiatives, launching of the EXIM bank, and measures to cope with new trade challenges.

The focus of the new trade policy is the Export Development Initiative, for which Rs60 billion have been requisitioned for the next three years (2012-15), he added. He stated, however, that this fund is still the lowest as compared to other regional countries.

Published in The Express Tribune, August 29^th, 2012.