A World Bank study has recommended to the State Bank of Pakistan (SBP) that export refinance schemes should be open to all sectors of the economy if these are to be made more impactful.
In particular, it explains, the new and existing firms that are diversifying into new markets or products can benefit more from the facility of access to export finance. The SBP should prioritise new ventures in allocating funds because they could be more efficient than continuing to lend to established exporters.
What the World Bank (WB) researchers are suggesting as stated above is not something unique. A senior multinational sales executive says that developed European countries offer cash subsidy to companies which export products for the first time to a new market.
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