PM applauds launch of Rs3 billion export insurance facility
Prime Minister Shehbaz Sharif welcomed a Rs3 billion risk‑pool for export credit insurance, aimed at expanding SME access to export financing and boosting Pakistan’s export volumes.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Export insurance risk‑pool supports SMEs across sectors, boosting exports – Buy bias for related exporters.
Sectors & Direction
Desk read
Desk call: Buy bias · Positively affected
- EconomyPositively affected
- MarketsPositively affected
- TextilePositively affected
- PharmaPositively affected
- AgriculturePositively affected
- ManufacturingPositively affected
Companies
Mentions in This Briefing
Sectors: Economy, Markets, Textile, Pharma, Agriculture, Manufacturing — Positive · Buy bias. PSX tickers: MEBL, MCB, UBL, HBL, BAHL, FABL. Export insurance risk‑pool supports SMEs across sectors, boosting exports – Buy bias for related exporters.
Full Story
Open on DawnPrime Minister endorses new export insurance risk‑pool
On 5 September, Prime Minister Shehbaz Sharif chaired a meeting of the Export Development Fund (EDF) in Lahore. He praised the launch of a Rs3 billion risk‑pool that will provide export credit insurance, primarily targeting small and medium‑sized enterprises (SMEs). The Prime Minister said the facility will help Pakistani businesses increase their export volumes and strengthen the national economy.
Structure and funding of the EDF
The EDF, now overseen by private‑sector professionals after recent restructuring, has a total allocation of Rs24 billion for investment in the business community. All available funds are being deployed to facilitate export‑related activities, with no further spending earmarked for infrastructure projects. The EDF is also undertaking initiatives in research, skills development and competitiveness to support economic growth.
Expected impact on trade and investment
The Prime Minister highlighted that the insurance scheme is a “highly welcome step” for SMEs and will contribute to Pakistan’s goal of becoming a global investment hub. He also noted ongoing efforts to extend Pakistan’s GSP+ preferential trade arrangement, which would preserve market access to the European Union.
Outlook
The government’s commitment to an export‑led growth model, reinforced by the new insurance facility, is expected to encourage higher export activity across a range of sectors, from textiles and agriculture to pharmaceuticals and engineering.
Key take‑aways
- Rs3 billion risk‑pool launched for export credit insurance. - Targeted at SMEs to boost export volumes. - EDF’s total investment fund stands at Rs24 billion. - No additional infrastructure spending; focus on research, skills and competitiveness. - Measures aim to sustain GSP+ status for EU market access.