HBL and EXIM (Export-Import Bank of Pakistan) signed a Memorandum of Understanding (MoU) to collaborate in the structuring and implementing EXIM’s Trade Credit Insurance facilities to support Pakistan’s export growth. With a special focus on Small and Medium Enterprises (SME) and Emerging Corporate/Commercial tier exporters, the Export Receivables Discounting is a first of its kind in Pakistan.

With HBL’s industry-leading SME lending portfolio of over Rs 100 billion and EXIM’s key role as Pakistan’s official Export Credit Agency (ECA), this MoU unifies their commitments to growing the ‘S’ of the SME business significantly and sustainably through a focus on cash-flow-based lending.

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

Commenting on the collaboration, Muhammad Nassir Salim, President & CEO of HBL, said, “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 enhance security for exporters and unlock new financing opportunities, ultimately contributing to a more diversified and robust export sector.”

Irfan Bukhari, CEO & President – EXIM, said, “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 focuses on enhancing SMEs’ access to financing, empowering them to expand their exports and contribute to Pakistan’s economic growth.  We 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.”