HBL and EXIM Bank of Pakistan Sign Landmark MoU to Boost Export Growth
Karachi, Pakistan – In a groundbreaking collaboration, Habib Bank Limited (HBL) and the Export-Import Bank of Pakistan (EXIM) have signed a Memorandum of Understanding (MoU) to enhance Pakistan’s export growth through innovative trade credit insurance facilities. This strategic partnership aims to support exporters, with a special focus on Small and Medium Enterprises (SMEs) and emerging corporate/commercial tier exporters.
The collaboration introduces Export Receivables Discounting, the first initiative of its kind in Pakistan. This product leverages HBL’s industry-leading SME lending portfolio, which exceeds Rs. 100 billion, and EXIM’s pivotal role as the official Export Credit Agency (ECA) of Pakistan. The MoU represents a unified commitment to significantly and sustainably grow the ‘S’ of the SME sector through cash-flow-based lending.
Under the agreement, EXIM and HBL will work together to develop and implement new products aimed at enhancing the overall risk-taking capacity in the country. The collaboration seeks to create a secure environment for exporters, mitigating credit risks associated with export receivables.
Muhammad Nassir Salim, President & CEO of HBL, commented on the collaboration: “This is a significant step forward in supporting Pakistan’s export growth, particularly for SMEs and emerging exporters. HBL is a leader in SME financing, and we are committed to leveraging our expertise alongside EXIM’s risk management capabilities to provide innovative export credit insurance solutions. This will not only enhance security for exporters but also unlock new financing opportunities, ultimately contributing to a more diversified and robust export sector.”
Irfan Bukhari, CEO & President of EXIM, echoed these sentiments: “Our collaboration with HBL marks a pivotal moment in supporting Pakistani exporters. By mitigating credit risks associated with export receivables, we safeguard the financial stability of both exporters and banks. This partnership particularly focuses on enhancing SMEs’ access to financing, empowering them to expand their exports and contribute to Pakistan’s economic growth. We much appreciate and value HBL’s initiative in developing this unique product with EXIM, where the liquidity will be provided by HBL, and the related risks will be shared between HBL and EXIM.”
This MoU signifies a major advancement in the efforts to bolster Pakistan’s export sector, promising significant benefits for SMEs and the broader economy.
