Export incentives under review as Government shapes budget 2026-27 strategy

The federal government has begun refining a new export support strategy for inclusion in the 2026-27 federal budget, with policymakers evaluating performance-linked incentives and broader structural reforms aimed at accelerating export growth and strengthening Pakistan’s foothold in international markets.

The proposals came under discussion at a high-level meeting held in Islamabad on Saturday and chaired by Federal Minister for Economic Affairs Ahad Cheema, according to a statement issued by the Ministry of Economic Affairs.

The session was attended by Minister of State for Finance Bilal Azhar Kayani, State Bank of Pakistan Governor Jameel Ahmad, Finance Secretary Imdadullah Bosal, Chairman of the Federal Board of Revenue Rashid Mahmood Langrial and Commerce Secretary Jawad Paul.

Also participating were noted economists Ijaz Nabi and Stefan Dercon, who shared recommendations on how Pakistan can sharpen export competitiveness and align economic policy with long-term growth objectives.

Officials briefed the meeting on a range of proposals being considered for the upcoming budget. These included performance-based rebates, incentives linked to additional export growth and reward mechanisms tied to exporters meeting specified targets.

The discussions focused on support for priority sectors and explored policy tools to encourage higher-value exports, diversify Pakistan’s export basket and bring more small and medium enterprises into global supply chains.

Participants reviewed possible fiscal measures, trade facilitation reforms and sector-specific incentives. They stressed that stronger exports would require more than tax concessions alone, pointing to the importance of competitive input costs, better infrastructure, smoother regulatory procedures and an improved ease of doing business environment.

Cheema said future incentive programmes should be sustainable and directly connected to measurable outcomes so that government support translates into higher export volumes, greater value addition and deeper SME participation in international trade.

The meeting concluded with consensus that export incentives should be transparent, performance-driven and designed to deliver long-term economic gains. The proposals will now be refined in consultation with stakeholders before being incorporated into the final federal budget.