Pakistan Seeks US EXIM Financing for Major Projects and Trade Expansion
Pakistan is exploring new financing options through the US Export-Import Bank (EXIM) to support major projects, including aircraft purchases, refinery upgrades, and the Reko Diq mining venture. The US EXIM Bank, an official export credit agency, provides financing, loan guarantees, and insurance to help foreign buyers purchase American goods, thereby supporting US exports and jobs.
The discussions between Pakistan and US EXIM are part of a broader effort to strengthen economic ties and attract US investment. Pakistan aims to double its bilateral trade with the US to $20 billion over five years, with the US being its largest single-country export market. The EXIM talks are not just about securing loans but also about fostering closer connections between trade, investment, and project financing.
Pakistan International Airlines (PIA) is seeking US EXIM financing for Boeing aircraft purchases, including Boeing 787 Dreamliners, and spare parts to reactivate grounded Boeing 777s. The government has clarified that no sovereign guarantee or taxpayer-funded loan is involved, as EXIM could finance the aircraft based on PIA's or its lessee's creditworthiness. Additionally, refinery modernisation and the Reko Diq project are areas where financing opportunities are being explored, with a $1.25 billion commitment already secured for Reko Diq.
The collaboration between Pakistan and US EXIM is evolving beyond a single loan, aiming to create a financing channel that links Pakistani projects with American companies, equipment, technology, and capital. This initiative aligns with Pakistan's goal to expand trade and economic relations with the US.