Low premium export credit guarantee insurance urged to boost exports

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Low premium export credit guarantee insurance urged to boost exports

April 23, 2018

Karachi: The Union of Small and Medium Enterprises (UNISAME) lauded the efforts of federal secretary commerce Younus Dagha and his team for increase in exports and urged him to set up a low premium export credit guarantee insurance scheme to boost exports to third world countries.

Zulfikar Thaver president UNISAME said in April 2017, exports were on the falling trend since past three years but since June 2017, the trend has been reversed. This became possible due to good policies of the federal secretary and his team at ministry of commerce

(MINCOM ), they did good follow-up and favourable international market all helped in achieving the growth.

The country already earned USD 2bn more till March 2018, and with three more months to go, it will reach USD 2.7bn more than the previous year. In rupee terms it would be around Rs. 310 bn additional revenues for export industry this year Younus Dagha said.

Recent devaluation would also help in sustaining this growth. Bringing more policy interventions in Budget 2018-19 to keep the momentum he added.

Thaver urged MINCOM to set up export credit guarantee insurance to enable exporters to get cover for exports to third world countries on low premium.

There is a huge market for traditional and non traditional goods in the third world countries and banks are not inclined to finance the SME sector due to lack of risk management expertise.

Our competitors in other countries have provided the facility to their exporters and increased their exports manifold.

Pakistan needs to offer this facility to their exporters to enter the markets of third world countries for their goods both traditional and non traditional.

This indemnity will also make the banks comfortable in financing the SME sector and promote value addition the UNISAME experts said.

The Union chief also invited the attention of the federal secretary commerce to the requirement of an SME export promotion bureau and an SME gallery to exhibit 24/7 online the goods manufactured by the sector. The bureau could also educate the sector on the knowhow of exports and global marketing. The Trade Development Authority of Pakistan (TDAP) had comprehended the need and formed a steering committee to implement the setting up of the SME bureau but later shelved it for reasons best known to them.

MINCOM in response has invited UNISAME team to discuss the idea with the Strategic Trade Policy Framework team

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