Pak EXIM export credit insurance can protect an SME exporter when an overseas buyer does not pay. In addition, this article explains the cover figures, the products, the Rs3bn SME Risk Pool and what is not yet published. Finally, all figures come from official EXIM and PID sources or from the October 2026 meeting reports.
What Export Credit Insurance Does
An SME exporter ships goods on credit and waits for payment. However, the buyer may fail to pay, cancel the contract or delay payment for months. In addition, political events can block payment or transfer. Export credit insurance covers these risks, so the exporter does not carry the full loss alone.
Pak EXIM is Pakistan’s official Export Credit Agency (ECA). Specifically, its Trade Credit Insurance products insure export receivables against non-payment. In addition, banks can treat insured receivables as stronger security, which can help exporters obtain finance.
The Three Cover Figures, Explained
Three different percentages appear in official material and meeting reports. Therefore, do not merge them. Each figure answers a different question.
1. Up to 90% of insured invoice value: bank lending
In fact, with credit insurance, a financial institution will lend up to 90% of the value of insured invoices.
2. Up to 85% commercial and 95% political cover
Policies insure export receivables up to 85% against non-payment due to buyer insolvency, contract cancellation, protracted default and similar commercial causes. In addition, cover reaches up to 95% for political events such as war, civil commotion, transferability and transfer restrictions.
3. Up to 90% of the insured risk: October 2026 meeting
Meanwhile, at the October 2026 Commerce Minister meeting, EXIM CEO Shahbaz H. Syed said coverage could extend to up to 90% of the insured risk, subject to terms and assessment.
| Figure | What it means | Source |
|---|---|---|
| Bank lending up to 90% | Lending against insured invoice value | Official EXIM product page |
| Cover up to 85% commercial | Payout share for commercial non-payment | Official EXIM product page |
| Cover up to 95% political | Payout share for political events | Official EXIM product page |
| Cover up to 90% of insured risk | CEO statement at Oct 2026 meeting, subject to terms | Commerce Minister meeting, Oct 2026 |
The Products: CSTP, STP, DCIP and BMP
In total, Pak EXIM offers four Trade Credit Insurance products. Each one covers a different setup.
Comprehensive Short-Term Policy (CSTP)
First, the CSTP protects the entire portfolio of credit or open-account sales against non-payment.
Specific Transaction Policy (STP)
Second, the STP covers a specific transaction, rather than the whole portfolio.
Documentary Credit Insurance Policy (DCIP)
Third, the DCIP protects the exporter’s conforming bank against the importer’s issuing bank.
Bank Master Policy (BMP)
Finally, the BMP protects the exporter’s financing bank against non-payment of the exporter’s international receivables.
The Rs 3bn SME Risk Pool
An SME Risk Pool of about Rs3bn was signed between the Export Development Fund (EDF) and Pak EXIM, along with an ICIEC reinsurance agreement, at Pak EXIM’s “Partnerships That Power Progress” event. In addition, the Finance Minister attended as chief guest.
At a 5 September 2026 meeting, the Prime Minister welcomed EDF and EXIM export insurance coverage, particularly for SMEs. Moreover, the Rs3bn Risk Pool aims to broaden access to export credit insurance. The EDF was restructured and its leadership entrusted to private-sector professionals. Finally, the entire Rs24bn EDF funds were allocated for investment to facilitate the business community, with no additional infrastructure expenditure.
An EDF and Pak EXIM MoU in July 2026 covers collaboration on SME exporter finance and risk mitigation. It includes a Joint Risk Pool to facilitate SME exporters through Pak EXIM Export/Trade Credit Insurance (TCI) products, along with co-funding, credit guarantees and green or sustainable exports.
ICIEC CEO Dr Khalid Khalafalla and Pak EXIM President Shahbaz Hussain Syed signed the ICIEC reinsurance partnership. EDF Chairman Omar/Umar Saeed and Syed signed the SME Risk Pool. Overall, the PM framed the effort as export-led growth and EDF reform.
Banks as the Channel
Banks act as partners and distribution channels for Pak EXIM cover. Insured receivables could support financing, subject to bank requirements. Punjab-based SMEs can also read about the Punjab SME support scheme.
In 2024, HBL and EXIM signed an MoU to structure and implement EXIM Trade Credit Insurance facilities, with a special focus on SME and Emerging Corporate/Commercial exporters. For example, the MoU introduced Export Receivables Discounting, the first of its kind in Pakistan. In addition, HBL’s SME lending portfolio exceeds Rs100bn. This MoU is from 2024, not new in 2026.
On 4 September 2026, HBL and EXIM entered a Bank Master Policy arrangement. Under it, EXIM provides credit insurance coverage on export receivables of eligible exporters, enabling HBL to support exporters via the BMP. For another SME finance route, see the Asaan Karobar Finance Scheme for SMEs.
October Push for Small and First-Time Exporters
At a Commerce Minister meeting on 9-10 October 2026, Minister Jam Kamal Khan called for wider access to export credit insurance and financing, with particular attention to small enterprises and first-time exporters. Furthermore, the Minister proposed coordination with trade and investment officers abroad and cooperation with international ECAs.
EXIM CEO Shahbaz H. Syed said cover protects against specified commercial and political risks, including buyer default and events preventing payment or transfer. In particular, assessment focuses on the overseas buyer’s creditworthiness and the destination-market risk profile. Therefore, this approach allows new exporters to seek cover.
Related reading: export-oriented financing.
What Is NOT Yet Published
Several practical details are not published yet. Therefore, do not assume them.
- No published application procedure.
- No premium rates or fee schedule.
- No eligibility checklist.
- No claim process.
- No confirmed launch date. A single blog claimed a 1 November 2026 launch, but that claim is single-source and unverified.
- Single-source claims also include a ‘Master Export Insurance Framework Agreement’ name, a claim that CSTP is issued directly to eligible SME exporters while BMP is issued to banks or DFIs financing SMEs, a nationwide media campaign, and Pak EXIM offices in Sialkot and Faisalabad. This article does not present these as fact.
FAQs
What does Pak EXIM export credit insurance cover? Specifically, it covers non-payment by an overseas buyer, including buyer insolvency, contract cancellation and protracted default, plus political events such as war, civil commotion and transfer restrictions.
How much of the risk does it cover? The product page gives up to 85% for commercial causes and up to 95% for political events. In addition, at the October 2026 meeting, the EXIM CEO said cover could extend to up to 90% of the insured risk, subject to terms and assessment. Finally, banks may lend up to 90% of insured invoice value.
Can a first-time exporter apply? Assessment focuses on the overseas buyer and the destination market, so new exporters can seek cover. However, no published application procedure exists yet.
Young exporters may also check business loans for young entrepreneurs.
Where can I read the official product details? See the Official Sources section below. The EXIM product page and PID releases are the official sources.
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Official Source
Official sources for this article appear below. Each link opens in a new tab. External links carry nofollow.
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