ISLAMABAD: In a major push to boost the country’s export sector, the Economic Coordination Committee (ECC) of the cabinet has approved three dedicated export finance subsidy schemes —the EXIM-administered Export Finance Scheme, the launch of a new Long-Term Export Growth Financing Facility, and a performance-based Rebate on Incremental Exports.
The decisions were taken during a meeting of the ECC held on Monday here at the Finance Division under the chairmanship of Federal Minister for Finance and Revenue Muhammad Aurangzeb.
The ECC considered a summary submitted by the Finance Division and approved three dedicated schemes for export enhancement. These include enhancement in the export package providing 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.
The key components for trade facilitation in Pakistan include the EXIM-administered Export Finance Scheme, which provides low cost funds to local exporters through participating banks to manage manufacturing and operational costs. This scheme has been transitioned from the State Bank of Pakistan to be managed under the EXIM Bank of Pakistan to boost overall export capacity. It features reduced markup rates down to 4.5 percent or lower depending on prime ministerial relief packages to help businesses compete globally.
Another component is the Rebate on Incremental Exports, which grants local tax and duty rebates ranging from 1 to 4 percent, scaling higher up to 3 to 8 percent for specific value added goods like garments and processed fabrics, tied directly to achieving 10 percent growth or incremental increase in export volume compared to the previous year.
The committee also considered a summary submitted by the Power Division and approved a Technical Supplementary Grant of Rs4 billion to meet expenses relating to multiple international arbitration proceedings initiated by independent power plant developers and major utility shareholders.
The ECC further approved another summary submitted by the Power Division on the proposal for adjustment of pensioners of closed Generation Companies to their respective pension disbursing distribution companies for payments of their retirement benefits.
The ECC further approved a summary submitted by the Petroleum Division regarding the declaration of the Pab reservoir in Rehman 8 ST 3 well as a Tight Gas Reservoir under the Tight Gas Exploration and Production Policy of 2011.
The committee considered and approved a summary submitted by the Ministry of Overseas Pakistanis and Human Resource Development reflecting the budget estimates of the Employees Old Age Benefits Institution for fiscal year 2025 26 and the revised budget estimates for fiscal year 2024 25.
It also approved a summary submitted by the Petroleum Division with proposal for the tariff fixation for indigenous gas supplies made to RLNG based power plants on the SNGPL network during April, May and June 2026.
The meeting was attended by Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal virtually, Federal Minister for Commerce Jam Kamal Khan, Federal Minister for Education and Professional Training Dr Khalid Maqbool Siddiqui, Federal Minister for Investment Qaiser Ahmed Sheikh virtually, Federal Minister for Petroleum Ali Pervaiz Malik and SAPM on Industries and Production Haroon Akhtar Khan, along with federal secretaries and senior officials from the relevant ministries, divisions and regulatory authorities.
