PACRA Maintains the Entity Ratings of Export-Import Bank of Pakistan

Pak EXIM has entered strategic partnerships with domestic financial institutions to leverage existing banking networks, enhance market penetration, and support the sustainable growth of Pakistan's export sector. Separately, the Bank has signed MoUs with counterpart institutions in Saudi Arabia and Türkiye to enhance bilateral ECA cooperation and cross-border trade. On the underwriting front, Trade Credit Insurance (TCI) remains the Bank's sole active insurance product. As of April 2026, the TCI portfolio stands at approximately PKR 8 billion against a full-year target of PKR 22 billion for CY2026, concentrated on A-rated buyer jurisdictions (Germany, UK, France, USA) and serving established corporate exporters in textile, footwear, and sportswear under a conservative, capital-preserving risk appetite. Notably, the Bank's current income remains largely derived from investments in PIBs and other government securities, reflecting that its core direct lending and insurance underwriting have not yet commenced at scale—underscoring the need to deploy its substantial capital base into higher-yielding, mandate-aligned assets i.e. Advances. To expand risk-bearing capacity without immediate recourse to sovereign equity, Pak EXIM has prioritized a formal reinsurance framework; following approval of its procurement policy under the SOE Act, 2023, the Bank is in the process of finalizing a quota-share reinsurance treaty with ICIEC, a multilateral Shariah-compliant institution and member of the Islamic Development Bank Group. This arrangement will enable Pak EXIM to cede a portion of TCI exposure, freeing up statutory capital and aligning with global ECA best practices. From a capital adequacy standpoint, Pak EXIM remains substantially over-capitalized, reporting total equity of PKR 21.6 billion (December 31, 2025) with a CAR of 333%, well above SBP's minimum requirement. As the designated disbursement agent for the Government's export finance subsidy schemes under the IMF-mandated EFF, the Bank manages the legacy SBP refinance book (approximately PKR 770 billion, scheduled for phase-out by FY2027), and in pursuant Prime Minister’s Enhanced EFS of PKR 230 billion, additional limits have been assigned to PFIs, alongside a separately originated LTFF portfolio of PKR 210 billion which the Bank directly administers. During calendar year 2025, the Bank disbursed PKR 16.82 billion in mark-up subsidies to PFIs, following a two-tier verification process wherein PFIs conduct internal audits before Pak EXIM performs independent verification of the subsidy claim.
Pak EXIM's forward trajectory remains contingent on disciplined execution of its 2026–2030 Strategic Plan. The Bank's focus will remain on broadening its insurance portfolio beyond textiles into IT-enabled services, engineering goods, processed foods, pharmaceuticals, and high-value agriculture, while also enhancing regional diversification of the export base. Deepening market penetration, expanding SME participation in the insured export ecosystem, and effectively operationalizing strategic initiatives will be key to sustaining growth momentum. Onboarding international reinsurance partners and developing an adequate risk-sharing framework remain critical to strengthening underwriting capacity, risk absorption, and institutional resilience. These initiatives are expected to enhance the Bank's role in mitigating counterparty risk and improving market access for Pakistani exporters.

About the Entity
Established under the Export-Import Bank of Pakistan Act 2022 and commencing operations in December 2023, Pak EXIM is a 100% Government-owned Development Financial Institution (DFI) mandated to catalyze export growth and diversification. The Board is fully constituted, comprising seven members and no casual vacancies; Mr. Naeem Iqbal serves as Chairman, while Mr. Shahbaz H. Syed, CFA, FRM, as President and CEO. The Board has formally approved the Bank's 2026–2030 Strategic Plan and accompanying Strategy Implementation Plan (SIP) 2026. With a sovereign-backed AAA rating and a focus on filling market gaps, the Bank provides essential credit, insurance, and risk mitigation products that commercial lenders cannot offer on market terms, serving as a pivotal enabler of Pakistan's international trade competitiveness.