According to Aniqul Islam, chief executive of the DCD-JS Factors Limited: “At present about 20 per cent of Pakistan’s export trade is being done on a ‘payment on acceptance of document’ basis (D/A).”
He said that after December 31, importers in the US and Canada will have far greater opportunity to do business on easier terms than now because of the price war like situation in a free-for-all environment.
For some time the Export Credit Guarantee Scheme of the Pakistan Insurance Corporation provided the risk cover, but a few years ago Pakistan Export Finance Guarantee Agency (PEFGA) entered the risk covering business with the help of Asian Development Bank.
Many issues prevented the PEFGA from entering this area in a big way and recently DCD JS has entered the factoring business area. It is a joint venture arrangement of the DCD Capital LLC USA and Jehangir Siddiqui and company to provide factoring to Pakistani exporters.
