By Abdul Wajid Khan ISLAMABAD, Feb. 11 (INP-WealthPK): The Government of Pakistan is taking steps to fully operationalise the Export-Import (EXIM) Bank of Pakistan for the promotion, expansion and diversification of the country’s international trade by providing credit, guarantee and insurance products to exporters and importers. According to an official source in the Ministry of Finance, EXIM Bank of Pakistan has been set up for supporting services to exporters and importers in the form of a statutory corporation that has the backing and support of the Government of Pakistan as is customary for export credit agencies to achieve their desired potential and objectives. The bank was declared a development finance institution on June 09, 2015 and incorporated with the Securities and Exchange Commission of Pakistan (SECP) under the Companies Ordinance 1984 as a company limited by shares. The source said that so far, the government has released Rs7 billion out of total paid-up capital of Rs10 billion. The authorised capital is Rs100 billion, divided into Rs10 billion ordinary shares of Rs10 each and the government holds 100 percent share of the bank. To operationalise the bank, the government has completed work on the preparation of the EXIM Bank Act and after completion of formal procedures in this regard, the EXIM Bank of Pakistan, Bill, 2021 was laid in the Parliament, which has been now referred to the National Assembly Standing Committee on Finance for the deliberation. The committee will consider the bill in next meeting and receive a briefing from the Ministry of Finance and officials of EXIM Bank before giving a verdict. The proposed act focuses on the purpose of the bank related to the development of trade, export support and import substitution support to the economy and in doing so, it provides for and explains the powers of the bank to offer trade services, obtain reinsurance, open and operate bank accounts and take securities to secure itself, incorporate subsidiaries and related powers which will support the key purpose of the bank, the source said. In 2018, at the request of the Government of Pakistan, the Asian Development Bank (ADB) approved a technical assistance grant of $500,000 to support operationalisation of the EXIM Bank of Pakistan and appointed Internal Financial Consulting Limited (IFCL), Canada to provide deliverables under the subject technical assistance. One of the very important components of the technical assistance was to draft the EXIM Bank of Pakistan Act giving necessary powers to the bank to be able to deliver on its mandate by providing necessary financing and insurance products to the exporters of the country and promoting foreign direct investment (FDI), said the source. The Ministry of Law and Justice vetted the EXIM Bank draft Act 2021 on May 27, 2021, and later, the Cabinet Committee for Disposal of Legislative Cases (CCLC) granted its approval for the enactment of the EXIM Bank of Pakistan Act, 2021 and then the decision was ratified by the federal cabinet on July 13, 2021.s Significance of the bank It is a very welcome development. The government is now moving forward to complete legal requirements to operationalise the EXIM Bank. It was long overdue and the need of the hour to establish and operationalise the EXIM Bank to compete in the international market for increasing the country’s exports. This step will help the government achieve its objective of promoting expansion and diversification of the export base of the country by providing export credit facilities for launching export-oriented and import-substitution ventures. In the era of the 4th industrial revolution, global competition is increasing due to modernisation and innovation with the utilisation of emerging technologies. All major countries have already operationalised their EXIM banks to enhance exports by supporting their businessmen. These countries are supporting their exporters to increase their competitiveness for international trade with the timely provision of financial and other relevant supporting services. Pakistani exporters are also facing tough competition in international markets with exporters from regional countries and they deserve institutional support like EXIM Bank to meet the challenges and to tap potential to increase exports. It is hoped that the EXIM Bank will be operationalised as soon as possible and it will play its due role in strengthening the country’s local industries and promoting exports.