The UK’s credit financing agency, UK Export Finance
(UKEF) has increased its financing limit for UK businesses looking
to export to and invest in Pakistan to £1.5 billion.
This announcement will boost trade partnerships between the two
countries and unleash Pakistan’s growth potential. UKEF helps
secure large contracts by providing attractive financing terms to
buyers and supporting working capital loans.
The British High Commissioner to Pakistan, Dr met with
the Federal Minister of Commerce for Pakistan Razaq Dawood today
to discuss trade ties and business potential between the two
countries. The Commerce Minister welcomed the UKEF’s announcement
of an increase of £500 million in the credit limit for business
investment in Pakistan, especially at a time when Pakistan is
looking to expand its trade potential to mitigate the impacts of
COVID19.
The British High Commissioner, Dr said;
UK credit financing for Pakistan has tripled in the last two
years, and is key to achieving my ambition to double the trade
between the UK and Pakistan. It is a sign of our confidence in
Pakistan and the strength of the unique relationship between
the two countries. I encourage all Pakistan businesses to look
for opportunities to partner with the UK on their journey
towards economic prosperity.
The UK is Pakistan’s third largest export partner. Between July
2019 and March 2020 Pakistan exported 7% of its total exports to
the UK, and the increase in the credit financing limit will help
turbo-charge trade relations between the two countries.
Notes to the Editors:
- UK Export Finance (UKEF) is the UK’s official Export Credit
Agency (ECA) working closely with the Department for
International Trade (DIT).
- Its mission is to ensure that no viable UK export fails for
lack of finance or insurance, while operating at no net cost to
the taxpayer.
- In 2019/20, UKEF provided £4.4 billion of support for UK
exports globally.
- UKEF recently completed a comprehensive review of its Country
Limits, resulting in increases in over 100 markets including
Pakistan
- The Export Financing offered is quite attractive if comparing
to a commercial bank
- There is a baseline requirement for 20% of the whole deal to
come back to the UK, but that doesn’t necessarily mean –for
example –the whole construction on the ground or the production
of a specific product. It looks at the whole supply chain. The
20% can come from a UK company that looks after the procurement
of services as part of a bigger deal. This makes UKEF very
attractive for multinational consortiums.
- For further information, follow this link
