HBL and EXIM Sign MoU to Implement Trade Credit Insurance Facilities

HBL and EXIM Sign MoU

HBL and the Export-Import Bank of Pakistan (EXIM) have signed a Memorandum of Understanding (MoU) to collaborate on structuring and implementing EXIM’s Trade Credit Insurance facilities to support Pakistan’s export growth.

This collaboration focuses particularly on Small and Medium Enterprises (SMEs) and the Emerging Corporate/Commercial tier exporters. The Export Receivables Discounting is a first-of-its-kind initiative in Pakistan. With HBL’s industry-leading SME lending portfolio, exceeding Rs. 100 billion, and EXIM’s role as Pakistan’s official Export Credit Agency (ECA), this MoU signifies a unified commitment to significantly and sustainably grow the SME sector through cash-flow-based lending.

Under this agreement, EXIM, as Pakistan’s ECA, will collaborate with HBL, leveraging its trade finance expertise to develop and implement new products. These products aim to enhance the country’s overall risk-taking capacity and create a secure environment for exporters.

Muhammad Nassir Salim, President & CEO of HBL, remarked, “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, added, “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.”