Get Export Credit Insurance From EXIM Bank Pakistan: Up to 85% Back on Unpaid Invoices
EXIM Bank Pakistan insures export invoices up to 85% against buyer default and 95% against political risk. The four policies, claim deadlines and how to apply.
Pakistani exporters can insure unpaid foreign invoices with the Export-Import Bank of Pakistan (EXIM Bank). Its website says a policy covers up to 85% of a loss when a buyer goes bust or defaults, and up to 95% when war or currency controls stop payment. You apply to EXIM directly, by email or at its Islamabad, Lahore or Karachi office.
The product got a push on 9 October 2026. Commerce Minister Jam Kamal Khan met EXIM Bank chief executive Shahbaz H. Syed in Islamabad and asked for wider access to export credit insurance, "with particular attention to small enterprises and first-time exporters", according to the government's press release. We then read EXIM's own policy pages, its FAQ and its 28 page policy document to see what an exporter actually gets.
Export credit insurance pays you when a foreign buyer does not
Export credit insurance protects the money a foreign buyer owes you after you ship. If the buyer goes insolvent, refuses to pay, or a war or currency ban blocks the transfer, EXIM pays the insured share of the unpaid invoice.
It matters most when you sell on open account, meaning you ship first and get paid in 30, 60 or 90 days. EXIM's FAQ says foreign buyers often press for those terms. Without cover, one bad buyer can wipe out a small exporter's year.
What it does not cover is just as important. EXIM will not pay if the goods are damaged or lost in transit, which is marine insurance. It will not pay if you broke the contract, shipped late or shipped the wrong goods. And while a buyer disputes the order, EXIM pays nothing until the dispute is settled.
EXIM Bank sells four credit insurance policies
Two policies are for exporters and two are for banks. Most small exporters will start with the single transaction policy.
| Policy | Who buys it | What it covers |
|---|---|---|
| Specific Transaction Policy (STP) | Exporter | One export deal with one buyer |
| Comprehensive Short-Term Policy (CSTP) | Exporter | All your credit sales to every buyer EXIM approves |
| Documentary Credit Insurance Policy (DCIP) | Bank | A confirming bank, if the importer's bank fails to pay a letter of credit |
| Bank Master Policy (BMP) | Bank | A bank that finances exporters, if their importers do not pay |
The CSTP has a condition people miss. EXIM says it "obliges the exporter to insure export receivables to all foreign buyers" that EXIM verifies. You cannot pick only your risky buyers.
Smaller firms may meet EXIM through their bank instead. The FAQ says the Bank Master Policy was built so cover reaches SMEs through the commercial banks that handle their export paperwork.
The cover is 85% for buyer default and 95% for political risk
EXIM's trade credit page gives two figures. Commercial risks, such as buyer insolvency, contract cancellation or long default, are insured up to 85%. Political risks, such as war, civil unrest or transfer restrictions, are insured up to 95%. You carry the rest yourself.
Other figures float around, so here is where each one comes from:
- Up to 85% and 95%: EXIM's trade credit insurance page, for commercial and political risk.
- Up to 90%: what the CEO told the minister on 9 October, "subject to applicable terms and assessment".
- 75% to 90%: EXIM's FAQ, describing what credit insurance usually pays in general.
- Up to 90% of invoice value as a loan: what EXIM says a bank may lend against insured invoices.
The exact share for your deal is written in your Credit Approval, the document EXIM issues for each buyer.
How to apply for EXIM export credit insurance
EXIM does not publish a premium rate. Its FAQ says the price depends on your trade volume, the buyer's creditworthiness, your industry and the payment terms. So the first step is a quote.
- Pick the policy. One deal means STP. All your credit sales means CSTP.
- Get the application form. It is Annexure A in the policy document linked from each policy page on eximbank.gov.pk.
- Send buyer details. EXIM assesses the overseas buyer and the buyer's country, which is why a first-time exporter can still apply.
- Receive the Credit Approval. It sets the credit limit, insured percentage, maximum credit period and waiting period.
- Pay the premium. The policy has a non-refundable annual minimum premium, due within 30 days of EXIM's invoice, plus premium per shipment above that.
- Declare every month. Report shipments and payments within 15 days of each month end.
- Use it for finance. Show the insured receivables to your bank when you ask for working capital.
EXIM's head office is at the Evacuee Trust Complex, Agha Khan Road, F-5/1, Islamabad. It has regional offices on the 9th floor of the State Bank building on Mall Road, Lahore, and at Bahria Complex-1, M.T. Khan Road, Karachi. Email info@eximbank.gov.pk or call 051 917 0100.
Claims have strict 30 day deadlines
The policy document runs on 30 day clocks, and missing one can sink a claim. Diarise these the day you ship.
- Tell EXIM at once if you think the buyer is in trouble.
- Tell EXIM if any payment is still overdue 30 days after its due date.
- File the claim form within 30 days of the "date of loss", which comes after the waiting period in your Credit Approval.
- Send any extra evidence EXIM asks for within 30 days.
- The policy gives EXIM 30 days to decide a claim and 30 more days to pay it.
Disputes over a claim go to arbitration in Islamabad under the Arbitration Act, 1940. EXIM also gets your right to chase the buyer once it pays you.
EXIM also runs Pakistan's export finance schemes now
EXIM took over the export finance schemes the State Bank used to manage. These are the Export Finance Scheme (E-EFS) for short-term working capital, and the long-term schemes E-LTFF and LTEGFF for machinery. EXIM gives limits to banks, and the banks lend to exporters.
The minister's push on 9 October was about joining these pieces, so that an insured invoice helps you borrow. If you are new to exporting, first register as an exporter on WeBOC and with TDAP. Then watch the market you sell into. Pakistan's exports rose 17.6% in September 2026. And EU buyers will care about the GSP+ rules from 2027.
Common questions
What does EXIM Bank export credit insurance cost?
EXIM does not publish a rate. It prices each policy on trade volume, buyer creditworthiness, industry and payment terms, and charges a non-refundable annual minimum premium.
Can a first-time exporter get EXIM cover?
Yes, in principle. EXIM's CEO said on 9 October 2026 that the assessment focuses on the buyer and the destination market, so new exporters can apply.
Does EXIM cover goods damaged at sea?
No. Loss or damage to goods is marine or cargo insurance. EXIM covers non-payment only.
Can I insure just one shipment?
Yes. The Specific Transaction Policy covers a single export transaction.
Does EXIM insure sales inside Pakistan?
No. Its FAQ says it does not offer domestic credit insurance yet.
How we verified this
What we checked, where we read it, and what we could not confirm.
Last checked 9 October 2026. We read the Press Information Department release of 9 October 2026 on the minister's meeting with EXIM Bank, and EXIM Bank's own pages on trade credit insurance, each of its four policies, its FAQ, its export finance schemes and its contact page. Claim deadlines, premium rules and arbitration are from EXIM's Specific Transaction Policy document (version 2), which we downloaded and read. Your own Credit Approval overrides any general figure here.
About the author
Global Affairs & Political Economy Writer
Muhammad Hatim is a book lover who started writing because he enjoys it. At Pakistan Era he writes about international relations, geopolitics and the global economy, with a particular interest in South Asia and the forces behind current events.
