Islamabad: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, emphasized the strategic importance of export-led and private-sector-driven growth for Pakistan during an event hosted by the Export-Import Bank of Pakistan (Pak EXIM). The gathering, titled “Partnerships That Power Progress,” marked the signing of two key agreements aimed at enhancing the country’s export financing and risk-sharing frameworks.
According to Press Information Department, the event witnessed the formalization of a reinsurance agreement between Pak EXIM and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), as well as an approximately Rs3 billion SME Risk Pool between the Export Development Fund (EDF) and Pak EXIM. These initiatives are part of a broader strategy to fortify Pakistan’s economic architecture, with an emphasis on sustainable growth.
Addressing a diverse audience, including senior government officials, exporters, and representatives from the banking and business sectors, the Finance Minister highlighted Pakistan’s transition from economic stabilization to growth. He reported a 3.7 percent economic growth in FY26 and a fiscal deficit reduction to 2.6 percent of GDP, the lowest in 22 years, alongside consistent primary surpluses and a significant external account adjustment.
Senator Aurangzeb outlined the government’s role in creating an enabling environment to promote investment, competitiveness, and exports. The FY27 Budget, he noted, included measures such as tax relief for exporters and the removal of advance tax on exports, aimed at steering the country toward export-led growth.
The agreements signed at the event are set to bolster Pak EXIM’s capacity and provide greater access to competitive financing for SMEs. The Pak EXIM-ICIEC reinsurance partnership is expected to enhance trade and export credit insurance coverage, while the SME Risk Pool will support smaller exporters against non-payment risks.
Acknowledging the private sector’s increasing role in the governance of export support mechanisms, the Finance Minister stressed the need for an integrated export ecosystem that involves collaboration among various stakeholders, including commercial banks, the State Bank of Pakistan, and the government.
Senator Aurangzeb concluded by emphasizing the importance of implementing these agreements effectively to realize Pakistan’s export ambitions, underscoring the government’s commitment to fostering a conducive environment for sustained economic growth.