Exporters risk losing rebates over performance shortfalls

The government has decided that exporters who fail to increase annual exports above the previous year's level will be required to repay provisional rebate payments received during the first three quarters, with the recovered amount to be remitted to the State Bank of Pakistan (SBP) within 15 days of the fiscal year's end.

 

The decision is part of a PKR 1.5 trillion export support package approved by the Economic Coordination Committee (ECC), which includes three schemes aimed at boosting exports through financing and performance-based incentives.

 

Under the new rebate mechanism, exporters exceeding their average quarterly exports from the previous year will receive 75% of the applicable rebate during the first three quarters. The remaining rebate, along with the final quarter's payment, will only be released if full-year exports surpass the previous year's level. Exporters failing to meet this benchmark will have the provisional rebates recovered.

 

The package also includes an expansion of the Export Finance Scheme (E-EFS) to PKR 1.5 trillion from PKR 1 trillion, and the launch of a PKR 350 billion Long-Term Export Growth Financing Facility (LTEGFF) to support export-oriented projects. In addition, a new performance-based rebate scheme, effective 1 July 2026, will provide rebates of 1% on incremental exports of up to 10% and 2% on export growth exceeding 10%, with an estimated annual cost of PKR 15 billion.