The Export-Import Bank of the United States (Ex-Im Bank) has renewed a short-term letter of credit (L/C) programme to support US exports to Pakistan - even though the US' official export credit agency is closed for routine transactions in Pakistan.

Under the programme Ex-Im Bank will insure irrevocable letters of credit (L/Cs) issued by three major Pakistani banks and confirmed by US banks.

Participating banks

The programme will support up to a total of US$125 million of US exports to Pakistan of consumer goods, spare parts, raw materials and bulk agricultural products on payment terms of up to 360 days.

Pakistani banks participating in the programme are National Bank of Pakistan, Muslim Commercial Bank and United Bank.

Additional exports

The programme aims to facilitate US exports to Pakistan that otherwise could not go forward according to Ex-Im Bank Chairman Philip Merrill who adds that the facility "demonstrates our confidence in the strength of Pakistan's major banks."

Although Ex-Im Bank is closed for routine transactions in Pakistan, the short-term L/C programme will enable US exporters to sell a wide range of goods on short terms of sale.

Ex-Im Bank's Country Limitation Schedule (CLS) will be amended to reflect this change in mid-April. The CLS is available online at www.exim.gov.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.