Govt Launches Performance-Based Export Rebate Scheme From July

ISLAMABAD: (Finance Reporter) – The federal government has introduced a performance-based rebate scheme for goods and services exporters, effective from July 1, 2026, aimed at rewarding businesses that increase their exports compared with the previous fiscal year.

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

Exporters achieving annual growth of up to 10% over the previous fiscal year will be eligible for a rebate equivalent to 1% of their incremental exports. Businesses recording export growth of more than 10% will qualify for a 2% rebate on the additional export value.

Companies whose annual exports fail to exceed the previous year’s level will not qualify for the incentive.

Quarterly Rebate Mechanism

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

The final rebate will be calculated after the end of the fiscal year, taking into account the exporter’s overall annual performance.

Exporters that maintain positive growth throughout the year will receive the rebate applicable to the final quarter, along with any remaining amount due for the first three quarters.

However, if an exporter’s total annual shipments remain at or below the previous year’s level, provisional rebates paid during the first three quarters will be recovered.

Designated banks will be responsible for recovering such amounts and transferring the recovered funds to the State Bank of Pakistan (SBP) within 15 days of the fiscal year’s close.

The government has provided designated banks with the implementation framework and relevant claim forms. Banks have also been instructed to notify their exporter clients about the scheme and assist them in filing and processing rebate claims.

The initiative is designed to make export incentives more performance-oriented, rewarding businesses that expand foreign sales and contribute to overall export growth.