Pakistan Export Finance Guarantee

The Pakistan Export Finance Guarantee agency, PEFG has been established with a view to enhance the access of the Small Medium and Emerging Exporters to bank credit. The PEFG aims to provide a comprehensive range of export trade finance guarantees, including both pre-shipment and post shipment, to exporters. This bankable guarantee, shall substitute for traditional repayment collateral requirements of the financing banks. The Guarantee of the PEFG will, however, cover 80% of the loan amount to be availed by the exporter, for which the PEFG shall obtain 50% (of the cover amount)

Premium Pricing

• Premium for each guarantee shall range from 1% to 4% (single transaction). It will even go lower than 1% in accordance with the risk PEFG assumes and the type of service obtained.
• PEFG will also levy a 0.25% fee, per transaction, with an initial maximum charge of  Rs. 10,000.

In addition to this the PEFG is also contemplating to provide a range of other services.

Detailed information are available on their website viz.  www.pefg.org