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Packing credit is an important form of pre-shipment finance provided to exporters to meet their working capital requirements before the actual shipment of goods. Its primary purpose is to enable exporters to procure raw materials, process or manufacture goods, and package them for export. Export business involves a time lag between the receipt of an export order and the actual realization of export proceeds. During this period, exporters need adequate financial support to cover production and allied expenses. Extending packing credit ensures that exporters are not financially constrained and can fulfill their international commitments efficiently. This credit helps promote exports, enhances competitiveness in global markets, and supports the nation’s balance of payments by boosting foreign exchange ___ ________ __________ ___ ________ ______ ______ __________.
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