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Packing credit is a short-term pre-shipment finance facility extended by banks to exporters. The primary purpose of providing packing credit is to provide working capital finance to exporters for procuring raw materials, processing, manufacturing, packing, and transporting the goods that are to be exported. Since export activities involve a time gap between incurring expenses and receiving payment from foreign buyers, exporters need liquidity to bridge this gap. Packing credit ensures that exporters can efficiently manage production and shipment without facing cash flow constraints. It not only helps in enhancing export performance but _____ ___ __________ ______ _________ ____ ____ _____ ________ _____.
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