ISLAMABAD: The British government’s credit financing agency, UK Export Finance (UKEF), has increased its financing limit to £1.5 billion for UK businesses looking to import from and invest in Pakistan.
This announcement will boost trade partnerships between the two countries and widen Pakistan’s growth potential, said a statement issued on Monday.
British High Commissioner to Pakistan Dr Christian Turner met with the Federal Minister of Commerce for Pakistan Razaq Dawood on Monday to discuss trade ties and business potential between the two countries.
Dawood welcomed the UK’s announcement of an increase of £500million in the credit limit for business investment in Pakistan, especially at a time when Pakistan is looking to expand its trade potential to mitigate the impacts of Covid-19.
British High Commissioner Dr Christian Turner said that UK credit financing for Pakistan has tripled in the last two years, and is key to achieving the ambition to double the trade between the UK and Pakistan.
“It is a sign of our confidence in Pakistan and the strength of the unique relationship between the two countries. I encourage all Pakistan businesses to look for opportunities to partner with the UK on their journey towards economic prosperity,” he said.
The UK is Pakistan’s third-largest export partner. Between July 2019 and March 2020, Pakistan exported 7 per cent of its total exports to the UK, and the increase in the credit financing limit will help turbo-charge trade relations between the two countries.
UKEF helps secure large contracts by providing attractive financing terms to buyers and supporting working capital loans. It activates the UK supply chain, connecting overseas project sponsors and buyers with UK exporters, through government-backed financing. It cooperates with many other export credit agencies, allowing it to collaboratively support international project financing needs.
During the last five years, the UK Export Finance has provided 14 million pounds of support for exports and international trade.