Prime Minister Shehbaz Sharif chaired a high-level review meeting on the Export Development Fund (EDF) in Lahore, where the government officially introduced a new Rs3 billion Risk Pool to provide export credit insurance. Jointly launched by the EDF and the Export-Import Bank of Pakistan (EXIM Bank), the facility aims to protect exporters from non-payment risks while unlocking credit access for small and medium-sized enterprises (SMEs). For local manufacturers and trade bodies in Pakistan, the initiative represents a major structural shift toward achieving export-led economic growth
PM Shehbaz Hails Rs3 Billion Risk Pool to Empower Exporters
Addressing economic planners and senior ministers, Prime Minister Shehbaz Sharif described the launch of the Rs3 billion Risk Pool as a milestone for small and medium businesses across the country. He emphasized that facilitating exporters with credit guarantees allows commercial entities to scale up transaction volumes without fearing international payment defaults.
“This initiative is a highly welcome step to promote small and medium-sized businesses and strengthen our national economy,” PM Shehbaz stated during the briefing. He reaffirmed his administration’s vision to transform Pakistan into a regional trade powerhouse and a competitive destination for international buyers.
Private Sector Governance and Strategic EDF Reforms
A central aspect of the meeting was the comprehensive restructuring of the Export Development Fund. The prime minister revealed that, following governance reforms, the leadership of the EDF has been handed over to private-sector professionals to ensure transparent, market-driven decision-making.
Officials confirmed that the entire Rs24 billion available with the EDF has been unlocked for strategic investments that assist exporters. Crucially, the fund will refrain from incurring additional administrative infrastructure costs, focusing instead on skills training, research, and technical compliance.
Sustaining European Market Access via EU GSP+ Extension
Beyond domestic credit insurance, the review meeting addressed international trade agreements vital to Pakistan’s textile and manufacturing sectors. Government representatives briefed the prime minister on ongoing diplomatic measures to secure an extension of Pakistan’s preferential trade arrangement under the European Union’s GSP Plus scheme.
The GSP Plus framework grants zero-duty access to key export categories in European markets, providing a vital competitive edge for Pakistani goods. Sustaining this arrangement, alongside the new credit insurance mechanism, forms a dual-track strategy to protect foreign exchange inflows.
Strategic Value for Pakistan’s Domestic Economy
In recent years, Pakistani exporters—particularly smaller enterprises—have faced challenges securing commercial loans due to high global market volatility and stringent collateral requirements. The export credit insurance provided through EXIM Bank mitigates commercial default risks, allowing local banking institutions to extend working capital to growing businesses.
High-level attendees at the meeting included Deputy Prime Minister and Foreign Minister Muhammad Ishaq Dar, Finance Minister Muhammad Aurangzeb, Commerce Minister Jam Kamal Khan, Federal Minister Rana Tanveer Hussain, and EDF Board Chairman Umar Saeed. Their collective presence underscored the inter-ministerial priority assigned to trade facilitation.
Future Outlook for Pakistan’s Export Sector
As EXIM Bank begins accepting applications for the Rs3 billion export credit insurance scheme, commercial bodies across Karachi, Lahore, Sialkot, and Faisalabad are preparing to utilize the risk-mitigation tool. By lowering financial barriers for non-traditional export products and expanding insurance coverage into emerging markets, Pakistan aims to diversify its trade footprint and achieve durable economic recovery.
The introduction of the Rs3 billion Export Insurance Risk Pool, coupled with private-sector leadership at the EDF, signals a concrete commitment by PM Shehbaz Sharif’s administration to back Pakistani exporters. By providing financial safeguards and pursuing trade extensions like GSP Plus, Pakistan is building a resilient foundation for sustainable, export-led economic growth.
