ECC approves three export finance schemes to boost exports

The Economic Coordination Committee (ECC) of the cabinet has approved three dedicated export finance subsidy schemes aimed at boosting the country's export sector, in a meeting held on Monday at the Finance Division under the chairmanship of Federal Minister for Finance and Revenue Muhammad Aurangzeb.

The approved schemes include the EXIM-administered Export Finance Scheme, a new Long-Term Export Growth Financing Facility, and a performance-based Rebate on Incremental Exports.

The ECC considered a summary submitted by the Finance Division and approved the three schemes, which include an enhanced export package offering fixed low-rate financing, strengthened support for export and import sectors, and special emphasis on SME sector inclusion. 

The committee directed that a six-month performance report be presented to assess the outcomes of the schemes.

Under the EXIM-administered Export Finance Scheme, low-cost funds will be provided to local exporters through participating banks to help manage manufacturing and operational costs. 

The scheme has been transitioned from the State Bank of Pakistan to the EXIM Bank of Pakistan to boost overall export capacity, and features reduced markup rates as low as 4.5% or lower, depending on prime ministerial relief packages, to help businesses compete globally.

The Rebate on Incremental Exports component grants local tax and duty rebates ranging from 1% to 4%, scaling higher to 3% to 8% for specific value-added goods such as garments and processed fabrics. 

The rebate is tied directly to exporters achieving a 10% growth or incremental increase in export volume compared to the previous year.