The National Assembly passed “The Export-Import Bank of Pakistan Bill, 2022” with a majority vote on Thursday, with the goal of establishing a facility to promote foreign trade.
Dr. Aisha Ghaus Pasha, Minister of State for Finance and Revenue, moved the measure for passage in the house. After reviewing the bill clause by clause, the house passed it by a majority vote.
The Export-Import Bank of Pakistan will be founded under this proposed law. Any foreign agency or insurance companies in or outside Pakistan will provide reinsurance to the bank. The bank will also provide trade finance, trade credit insurance, and equity participation on its own or in collaboration with other financial institutions or insurance providers in or outside Pakistan.
According to clause 7 of the bill related to borrowing, “The bank may, for the purpose of the bank’s business, borrow in local or foreign currency on such terms and conditions as may be prescribed by the Board and subject to the provision of other laws, from the following sources, namely- (a) the federal government, (b) international, bilateral and multilateral agencies, (c) financial institutions, (d) the public by issuing, on its or through a wholly-owned or controlled subsidy, securities in or outside Pakistan; or (e) through such other means as may be permitted under the prudential regulations or is otherwise approved by State Bank.”
According to a statement of the bill, “the government has taken several initiatives for the promotion and development of international trade as well as export-oriented industries and import substitution in the national economic interest.”