March 10, 2022 (MLN): The Small and Medium Enterprise (SME) exporters feel handicapped due to lack of Export Credit Guarantee (ECG) therefore, a full-fledged export credit guarantee is needed to cover losses due to non-realization of proceeds and refusal of buyers to retire documents for goods shipped under firm contracts, President of the Union of Small and Medium Enterprises UNISAME Zulfikar Thaver said while inviting the attention of the policymakers to the lack of facilities for SMEs in exports, especially to third world countries, said a press release issued today.
The premium rate for insurance under ECG must be affordable and it is very unfortunate that the much talked about Exim Bank is yet to commence business, he added.
The union chief lamented that it is very difficult for SME exporters to compete globally when our competitors in neighbouring countries are facilitated fully by their governments in terms of banking, insurance and freight subsidies.
UNISAME Council has urged the State Bank of Pakistan (SBP) to advise the commercial banks to educate their customers to take the best precautions and seek analysis of bills of exchange to cover and secure realization as many SME exporters are unaware of this protective measure.
UNISAME Council said our exports can increase multifold if the exporters are indemnified against losses in transactions due to contract violations under much-needed ECG and urged the SBP and commerce ministry to co-ordinate and make a strong ECG scheme.
