Govt extends export scheme utilisation period to 18 months

The government has doubled the utilisation period under the Export Facilitation Scheme (EFS) from 9 to 18 months, a move aimed at easing cost pressures and improving flexibility for exporters.

Minister of State for Finance Bilal Azhar Kayani announced the decision on Thursday, saying exporters will now be able to import inputs at zero duty and import-stage taxes provided they are utilised within the revised 18-month window, compared to the earlier 9-month limit.

An additional extension of up to six months may also be granted on a case-by-case basis by a designated committee, while a six-monthly reconciliation requirement will be enforced to prevent misuse of the scheme.

The policy shift is expected to particularly benefit small and medium-sized exporters by reducing compliance pressure and lowering operational costs.

Officials said the decision will also bring relief to a backlog of 7,932 Goods Declarations (GDs) that had exceeded the earlier 9-month limit. With the revised timeframe, these declarations have now become eligible again for exports under the scheme.

The reforms follow recommendations by a technical committee that reviewed historical EFS data and benchmarked utilisation periods against regional peers before finalising its proposals, which were approved by the prime minister.

Two additional changes have also been introduced. Exporters will now benefit from automatic replenishment of security deposits in line with goods consumed and exported, reducing processing time. Moreover, EFS users have been granted the right to appeal decisions of regulatory collectors before the Chief Collector.

The initiative was developed in coordination with the Federal Board of Revenue, the Ministry of Commerce and private sector stakeholders, as part of broader efforts to support export growth and improve the ease of doing business.