Pakistan launches rebate scheme to reward export growth

The Government of Pakistan has introduced a performance-based rebate scheme on incremental exports, effective July 1, 2026, aimed at encouraging exporters to increase shipments compared with the preceding fiscal year.

Under the scheme, both goods and services exporters will be eligible for rebates based on their annual export growth.

Exporters achieving annual export growth of up to 10% over the previous fiscal year’s exports will receive a rebate equivalent to 1% of the incremental export value.

Those recording export growth of more than 10% will qualify for a rebate equivalent to 2% of their incremental export value.

Exporters that fail to record annual growth in exports compared with the preceding fiscal year will not be eligible for the incentive.

Quarterly payments

The rebate will initially be disbursed on a quarterly basis. Exporters whose exports during a calendar quarter exceed their average quarterly exports in the preceding year will receive 75% of the applicable rebate on a provisional basis.

The remaining amount will be adjusted after the end of the fiscal year based on the exporter’s full-year performance.

At the end of the year, exporters whose total exports exceed those of the preceding year will receive the rebate for the final quarter along with any residual rebate due for the previous three quarters.

However, if an exporter’s full-year exports remain equal to or below the previous year’s level, provisional rebate payments made during the preceding three quarters will be recovered.

The designated banks will be responsible for recovering such amounts and remitting them to the State Bank of Pakistan within 15 days of the close of the year.

Banks tasked with implementation support

The government has provided banks with the implementation mechanism and claim form for the scheme through the relevant annexures.

Banks have been directed to disseminate details of the incentive among their exporter customers and provide the necessary support to ensure effective implementation.

The performance-based mechanism is intended to link export incentives directly with incremental growth, rewarding exporters that expand their foreign sales while limiting benefits for those unable to improve export performance.