ISLAMABAD: Pakistan’s caretaker Finance Minister, Shamshad Akhtar, announced the launch of the Export-Import Bank of Pakistan (EXIM) Bank, emphasizing its significance in enhancing the country’s trade.
Speaking at an Islamabad ceremony, she acknowledged the challenges in establishing this institution, hailing it as a proud moment amidst initial skepticism.
This milestone was hailed as pivotal for Pakistan, with Akhtar stressing the necessity to align export policy frameworks to fortify balance of payment sustainability.
Historically, low export earnings have impacted this sustainability, making the operationalization of the EXIM Bank a crucial step.
Akhtar underscored the bank’s core focus on providing vital Trade Credit Insurance products to exporters and commercial banks.
She emphasized the government’s recognition of initiatives like the EXIM Bank, acknowledging their potential in driving economic development and strengthening Pakistan’s trade relationships.
Meanwhile, the State Bank of Pakistan (SBP) exceeded expectations by raising Rs396.57 billion, surpassing the Rs190 billion target via the sale of fixed-rate Pakistan Investment Bonds (PIBs).
Through competitive bids, the central bank secured Rs151.7 billion for 3-year bonds, Rs39.5 billion for 5-year bonds, and Rs103.96 billion for 10-year bonds. Additionally, Rs101.411 billion was acquired from non-competitive bids, summing up the total amount raised to Rs396.57 billion.
During the auctions, there were no short-selling activities, and no bids were received for the 15, 20, and 30-year PIBs.
The cut-off yields were set at 17.199%, 15.88%, and 15% for the 3-year, 5-year, and 10-year periods, respectively.
Comparatively, in the previous PIB auction held on November 08, there was a noticeable decrease in yields for the 3-year, 5-year, and 10-year PIBs, dropping by 19, 7, and 10 basis points (bps) respectively.
This decline in yields is attributed to market participants’ anticipation that interest rates have peaked and are likely to decrease in the upcoming months.
In the previous PIB auction, SBP raised Rs252.3 billion against a target of Rs160 billion, witnessing yields dropping by as much as 180 bps.
