Nov 25 , 2015
News
Parliament still undecided on Exim Bank
razi syed
KARACHI: Despite its high importance, parliament is still undecided about introducing an act for the establishment of Export and Import Bank of Pakistan (Exim Bank).
Nothing substantial has been done by parliament in this regard. State Bank of Pakistan (SBP) is carrying out extensive research, including designing the framework for setting up Exim Bank. Daily Times has learnt that Ministry of Finance is not interested in taking initiatives on finalising this vital project. It had itself announced the project. The bank does not even need big investment. SBP sources have disclosed that it is still working on the legal framework on setting up Exim Bank and the final outcome is likely in the next couple of months.
It would provide liquidity to exporters and its authorised capital would be Rs 100 billion, while the initial paid-up capital will be Rs 10 billion. It is on record that Finance Minister Ishaq Dar announced the establishment of Exim Bank with the aim of increasing loans to the exporters. Dar asserted the bank would be operational during 2015-16 fiscal. Former commerce minister Makhdom Amin Fahim had also announced the establishment of Exim Bank. However, Finance Ministry did not cooperate in this respect.
State Bank of Pakistan would soon examine the possibilities of setting up an export-import bank to facilitate the business community, and Ministry of Finance and other relevant ministries would be consulted in this regard at an earliest. The executive members of Federation of Pakistan Chambers of Commerce and Industry and members of Karachi Chamber of Commerce and Industry have time and again demanded formation of Exim Bank. It is imperative for the promotion and development of exports of the country, said Ghulam Rabbani, a senior member of Karachi Cotton Association.
All regional countries, including China, India and Bangladesh, have such banks, and Pakistan is the only country not to have one. The Exim Bank will facilitate trade-related transactions and opening of letters of credit to ease the financial burden of the exporters and importers, he added. It will also boost business activities and economy. It is matter of concern that local mega projects are being provided support by Exim Bank of United States of America and China. It includes funding of around $55 million for revamping of Pakistan International Airlines and $6.5 billion for setting up a nuclear power plant.
Courtesy www.dailytimes.com.pk