ISLAMABAD: The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and Pakistan’s Export-Import Bank (Pak EXIM) have signed a reinsurance agreement aimed at strengthening Pakistan’s export risk coverage and enhancing the competitiveness of its exporters in global markets, the Pakistani information ministry said Wednesday.

The ICIEC, a member of the Islamic Development Bank Group, is a multilateral insurer that provides Sharia-compliant investment and export credit insurance. The Reinsurance Agreement was announced during an ICIEC delegation's visit to the Lahore Chamber of Commerce and Industry (LCCI) to engage with the local exporters and strengthen collaboration aimed at supporting Pakistan’s export growth.

The visit provided an opportunity for all stakeholders to engage and discuss measures to facilitate greater access to export support products, services and schemes, particularly risk-mitigation solutions such as Pak EXIM’s Trade/Export Credit Insurance, with their delivery being enhanced through the Reinsurance Agreement and a Rs3 billion ($10.8 million) SME Risk Pool agreement between Export Development Fund (EDF) and Pak EXIM.

"ICIEC is proud to deepen its long-standing partnership with Pak EXIM through this Reinsurance Agreement, which reinforces the risk-mitigation capacity underpinning Pakistan's export sector," ICIEC CEO Dr. Khalid Khalafalla was quoted as saying by the Pakistani information ministry.

"ICIEC remains committed to working alongside our partners to expand access to credit and political risk insurance solutions for Pakistani exporters, including SMEs, and to supporting the country's drive toward greater export diversification and competitiveness in global markets. We look forward to building on this collaboration with Pak EXIM and EDF in the years ahead."

Speaking on the occasion, Shahbaz Hussain Syed, President & CEO of Pak EXIM, emphasized the importance of sustained engagement with LCCI and the private sector in strengthening Pakistan’s export ecosystem, according to an information ministry.

He highlighted that closer collaboration with Lahore’s business community would help enhance awareness of and access to Pak EXIM’s current risk-mitigating Export Credit Insurance product range as well as the future financing, guarantee, advisory, and other products and services planned under its portfolio.

Lahore has a diverse business and export base spanning manufacturing, engineering, textiles, pharmaceuticals, food processing, leather, chemicals and other value-added sectors. The city’s extensive business ecosystem makes engagement with its private sector an important component in efforts to promote export diversification and enhance Pakistan’s international competitiveness.

LCCI President Faheem ur Rehman Sagol, said the commerce body was actively working for diversification of export markets and products and was committed to facilitating its members in accessing new international opportunities.

"The engagement reflects the shared commitment of Pak EXIM, ICIEC and EDF in strengthening Pakistan’s export capacity, promoting greater participation of businesses in international trade, and contributing to sustainable export-led economic growth," the information ministry said.