The proposed knowledge and support technical assistance (TA) from Asian Development Bank (ADB) will support the operationalization of the EXIM Bank of Pakistan (EXIMBP) which will provide trade financing facilities to help local exporters get access to much needed financing to competitively trade internationally. Overtime, this will help the economy increase and diversify its export base and promote long-term economic growth. The TA will build on the outputs by International Financial Consulting under TA-8832 which produced a draft operational roadmap for EXIMBP.
|Project Name||Promoting Investments and Economic Growth through International Trade|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Knowledge solutions
Private sector development
|Sector / Subsector||
Finance / Trade finance
|Gender Equity and Mainstreaming||No gender elements|
|Description||The proposed knowledge and support technical assistance (TA) from Asian Development Bank (ADB) will support the operationalization of the EXIM Bank of Pakistan (EXIMBP) which will provide trade financing facilities to help local exporters get access to much needed financing to competitively trade internationally. Overtime, this will help the economy increase and diversify its export base and promote long-term economic growth. The TA will build on the outputs by International Financial Consulting under TA-8832 which produced a draft operational roadmap for EXIMBP.|
|Project Rationale and Linkage to Country/Regional Strategy||
International trade has historically been a precursor to economic growth of developed countries and, more recently, of many emerging economies. The Government of Pakistan (GOP) recognizes that constraints to international trade inhibit economic expansion, competitiveness and growth. Limited trade facilitation mechanisms, and inadequate trade-related infrastructure facilities and institutional financial support systems have been identified as key constraints and barriers to export trade in Pakistan.
Trade-related financing is largely intermediated by local commercial banks which typically has preference for larger and more established banking clients limiting its exposure to support other prospective local exporters and suppliers, many of which are small and medium-sized enterprises (SMEs). In many cases, funding lines from banks, if available, are not competitive, has short tenor, and typically require high levels of collateral which pose significant capital and liquidity constraints to the borrowers, particularly, to local export-oriented manufacturers and producers that rely on imports of capital goods and raw materials. Moreover, most exporters do not purchase credit insurance against non-payment of their accounts receivables, presumably due to the fact that they cannot access international credit insurance as this is typically provided by a national export credit agency like EXIMBP which is not yet in operation.
Limited access to trade finance place many SMEs and other exporters at a disadvantage to international competitors who can access financial support and credit enhancements from their country's national export credit agency capable of offering insurance for extended payment terms and facilitating lower cost of financing. This situation discourages trade competition which further deprives the economy of productivity growth.
To address some of these trade constraints, GOP established EXIMBP to promote the expansion and diversification of export base of Pakistan and mitigate the risks faced by local businesses conducting international trade. It was incorporated as a company limited by shares under the Companies Ordinance, 1984 in June 2015 with an authorized capital of Pakistani Rupees (PRs) 100 billion (approx. $1 billion), out of which PRs. 7 billion (approx. $70 million) has been paid in and another PRs. 30 billion (approx. $30 million) is expected to be paid in by 2018. The State Bank of Pakistan (SBP), Pakistan's central bank, has deputed five staff at managerial positions at EXIMBP, including its Chief Executive Officer , who is spearheading its operationalization process. EXIMBP is yet to secure its certificate of commencement of business and is seeking the assistance of ADB to operationalize the company through the proposed technical assistance and subsequently capitalize the company from the ensuing sovereign loan from ADB.
|Impact||Export competitiveness and diversification improved (Pakistan's Strategic Trade Policy Framework 2018 2023)|
|Description of Outcome||EXIMBP made operational|
|Progress Toward Outcome|
|Description of Project Outputs||
EXIMBP operational and institutional structure reviewed
Operational roadmap and business plan updated
Legal and regulatory framework and other institutional arrangements required for EXIMBP's operation determined and enacted
Economic, financial, and safeguards assessment performed
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Responsible ADB Officer||Torres, Adrian|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Public Management, Financial Sector and Trade Division, CWRD|
Ministry of Finance, Revenue and Economic Affairs
Block Q, Pakistan Secretariat
Islamabad, ICT, Pakistan 44000
|Concept Clearance||18 Jul 2018|
|Approval||14 Sep 2018|
|Last Review Mission||-|
|Last PDS Update||08 Oct 2018|
|Approval||Signing Date||Effectivity Date||Closing|
|14 Sep 2018||12 Oct 2018||12 Oct 2018||31 Dec 2019||-||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|500,000.00||0.00||125,000.00||0.00||0.00||0.00||625,000.00||14 Sep 2018||0.00|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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|Title||Document Type||Document Date|
|Promoting Investments and Economic Growth through International Trade: Technical Assistance Report||Technical Assistance Reports||Sep 2018|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
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|Tender Title||Type||Status||Posting Date||Deadline|
|Operationalization of Exim Bank of Pakistan (EXIMBP)||Firm - Consulting||Closed||26 Jul 2018||24 Aug 2018|
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