ISLAMABAD: The federal cabinet on Tuesday gave an approval for enactment of the Export-Import Bank of Pakistan Act, 2020.
According to sources, the Ministry of Finance had proposed the enactment of EXIMBP Act on the recommendations of senior government officials and international legal experts.
The EXIM Bank of Pakistan was set up by the government in June 2015 for the promotion, expansion and diversification of international trade through provision of credit, guarantee and insurance products as well as ancillary services to exporters and importers in the form of a statutory corporation having the backing and support of the government.
The bank was declared a Development Finance Institution (DFI) and was incorporated with the Securities and Exchange Commission of Pakistan (SECP) under the Companies Ordinance 1984, on June 11, 2015.
Sources said that the authorized capital of the bank was Rs100 billion, while paid-up capital was Rs10 billion. Of the total paid-up capital, the government has so far released Rs7 billion.
The Asian Development Bank (ADB) had approved a technical assistance (TA) grant of $500,000 to support the operationalization of EXIM Bank on the request of the government in 2018, whereas the International Financial Consulting Limited (IFCL), Canada, would provide deliverables under the said TA.
As per the sources, one of the components of the TA 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.
They said the EXIM Bank of Pakistan Act was drafted by the finance ministry under the aegis of a stakeholders’ steering committee, comprising officials of the finance and commerce divisions, State Bank of Pakistan and SECP, and with the support of international legal experts of IFCI (Canada). Following the approval of the adviser to the PM on revenue, a summary in this regard was presented to the cabinet for approval.