Govt introduces performance-based rebate scheme to boost exports

August 25, 2026 (MLN): The Government of Pakistan has introduced a performance-based rebate scheme for goods and services exporters, effective from July 1, 2026, offering incentives to businesses that increase their exports compared with the preceding fiscal year.

Under the new mechanism, the rebate will be linked directly to the additional export value generated during the year.

Exporters recording annual export growth of up to 10% over the previous fiscal year will receive a rebate equal to 1% of their incremental exports. Meanwhile, those achieving export growth of more than 10% will qualify for a 2% rebate on the incremental export value.

However, exporters whose annual exports do not exceed the level recorded in the preceding fiscal year will not qualify for the incentive.

The rebate will initially be paid on a quarterly basis. Exporters whose shipments during a calendar quarter exceed their average quarterly exports of the previous year will receive 75% of the applicable rebate provisionally.

The remaining rebate amount will be determined following the close of the fiscal year, based on the exporter’s overall annual performance.

Exporters that maintain positive export growth for the full year will receive the rebate for the final quarter, along with any outstanding amount relating to the first three quarters.

Conversely, where an exporter’s total annual exports remain at or below the previous year’s level, any provisional rebates paid during the first three quarters will be recovered.

Designated banks will be responsible for recovering these amounts and transferring them to the State Bank of Pakistan (SBP) within 15 days after the close of the fiscal year.

The government has also shared the implementation framework and claim forms with the designated banks, which have been directed to inform their exporter clients about the scheme and facilitate the submission and processing of rebate claims.

The initiative aims to make export incentives more performance-driven by rewarding businesses that generate additional foreign sales and contribute to export growth.

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