Rs3 billion export‑insurance risk pool and expanded financing for SME exporters launched
The Export Development Fund and EXIM Bank of Pakistan have created a Rs3 billion insurance pool and increased export‑finance envelopes, aiming to lower payment risk and boost capital access for small‑ and medium‑size exporters.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Banks and the broader economy benefit from the new export‑insurance pool and financing, creating a Buy bias for related tickers.
Sectors & Direction
Desk read
Desk call: Buy bias · Positively affected
- BanksPositively affected
- EconomyPositively affected
Companies
Mentions in This Briefing
Sectors: Banks, Economy — Positive · Buy bias. PSX tickers: MEBL, MCB, UBL, HBL, BAHL, FABL. Banks and the broader economy benefit from the new export‑insurance pool and financing, creating a Buy bias for related tickers.
Full Story
Open on Business Recorder## New export‑insurance risk pool for SMEs
Mian Zahid Hussain, president of the Pakistan Businessmen and Intellectuals Forum, praised the establishment of a Rs3 billion export‑insurance risk pool for small‑ and medium‑size enterprises (SMEs). The pool is funded through the Export Development Fund (EDF) and the EXIM Bank of Pakistan, and is complemented by a re‑insurance agreement with the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and the HBL‑EXIM Bank Master Policy.
## Expanded export‑finance facilities
The government has also raised the envelope of the Export Finance Scheme from Rs1 trillion to Rs1.5 trillion for FY2026‑27, earmarking Rs300 billion specifically for SME exporters, agricultural SMEs and new borrowers. In addition, a Rs350 billion Long‑Term Export Growth Financing Facility will fund new machinery, plant modernisation and equipment upgrades, helping firms meet international environmental standards.
## Rationale and expected impact
Pakistan’s merchandise exports fell 5.97 % to $30.1 billion in FY2025‑26 while the trade deficit widened to $39.5 billion. Remittances of $41.6 billion provided crucial foreign‑exchange support, underscoring the need for greater export value‑addition and market diversification. The new insurance pool and financing lines aim to reduce non‑payment risk, improve working‑capital availability, and encourage SMEs to accept overseas orders without fear of payment defaults.
## Role of banks and digital platforms
Eligible businesses can obtain financing through banks and financial institutions, with the EXIM Bank’s EFS Digital Portal facilitating faster coordination. Hussain called for clear guidance, transparent terms and efficient processing from banks to ensure timely fund disbursement.
## Additional support measures
EDF has allocated Rs24 billion for business facilitation, research, skills development and competitiveness. Hussain urged continued focus on product improvement, certification, packaging, market intelligence and training, as well as preserving GSP+ status, lowering energy costs and expediting tax refunds to improve the overall business environment.