By Ayesha Saba

Pakistan is preparing to launch a Rs2 billion export credit insurance risk-sharing facility for small and medium enterprises (SMEs) in the first week of September, as the Export Development Fund (EDF) moves to widen exporters’ access to finance and protect them against international trade risks.

According to documents available with Wealth Pakistan, EDF has allocated Rs2 billion for a Joint SME Export Credit Insurance Risk-Sharing Pool in collaboration with the Export-Import Bank of Pakistan.

The facility will be the first financial product under the collaboration between the two institutions and is targeted for launch in the first week of September.

The product is intended to extend export credit insurance to SME exporters, protecting them against international trade risks while widening access to finance. It is also expected to support market expansion and business with new buyers.

The memorandum of understanding between EDF and EXIM Bank provides a non-binding framework for future strategic collaboration and seeks to align the two institutions with national priorities of export diversification and SME inclusion.

Alongside the planned financial product, EDF has introduced a new framework for the appraisal of export-development proposals to improve efficiency, transparency and predictability in the process.

The EDF Board approved the Proposal Appraisal Standard Operating Procedures (SOPs) on August 13, 2026, including criteria and minimum documentation for registration as applicants and standard procedures and timelines for proposal evaluation.

Minimum parameters and marking criteria for evaluating proposals have also been finalised, along with baselines for management, monitoring and financial releases.

The documents state that a committee constituted for the appraisal process was scheduled to begin evaluating 65 pending proposals at its meeting on August 27.

The new initiatives follow a series of export-related projects brought into service during FY2025-26.

At the Sialkot Tannery Zone, construction of a Combined Effluent Treatment Plant was completed and a trial run was successfully conducted, with EDF investment of Rs1.6 billion.

At the Sialkot Dry Port, a new warehouse was completed, reach stacker and lifters were procured and services started. EDF invested Rs720 million in the project.

The fund also invested Rs450 million in an airport cargo-screening project in Sialkot, where explosive-detection and X-ray inspection systems were installed to meet EU security standards.

In Faisalabad, Rs210 million was invested in the PTEA Laboratory, where new laboratory equipment was installed and more than 10,000 tests were conducted during the last five months.

EDF also invested Rs146 million in the Centre of Excellence for Citrus in Sargodha, where a new laboratory for MRL testing and other services was established. Trial research services were initiated and the accreditation process was started.

Other interventions included Rs120 million for the Research Training Development Centre at the University of Swabi and Rs93 million for the Sports Industry Development Centre in Sialkot, where high-quality tennis-ball production capacity of 500 balls per day was installed.

Another Rs72 million was invested in solar drying tunnels for chilli in Sindh. Under the initiative, 22 solar dryers were constructed with a 20% contribution from farmers across three districts and activated for the current season.

The planned Rs2 billion insurance facility, together with the new proposal appraisal framework and other export-support interventions, reflects EDF’s efforts to expand support for exporters while strengthening the governance of export-development projects.

Credit: INP-WealthPk