The State Bank of Pakistan (SBP) is set to increase its monitoring of export finance schemes after the Economic Coordination Committee (ECC) approved an Rs88 billion subsidy package for fiscal year 2026-27.
The government has introduced the package to support exports while ensuring that public funds are not misused. It includes an expanded Export Finance Scheme, a new Rs350 billion Long Term Export Growth Financing Facility and performance-based rebates for exporters.
Under the expanded Export Finance Scheme, the SBP will increase the financing limit from Rs1 trillion to Rs1.5 trillion. The facility will provide working capital loans for up to 180 days and will be available to exporters of value-added products.
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The government will also replace the existing Export Long Term Financing Facility with the new Long Term Export Growth Financing Facility. With a total size of Rs350 billion, the facility will finance new export-oriented projects as well as balancing, modernization and replacement projects.
The facility will be available to businesses that earn at least 80% of their revenue from exports. Eligible businesses will be able to access subsidized fixed-rate financing for a period of up to 10 years.
According to government estimates, the facility will require Rs195.98 billion in subsidies overall, with Rs25.16 billion expected to be spent during FY27.
The government will also introduce a performance-based rebate on incremental exports from July 1, 2026. The scheme is expected to cost around Rs15 billion during FY27.
Exporters that record export growth of up to 10% compared with the previous year will receive a rebate equal to 1% of their additional exports. Those achieving growth of more than 10% will qualify for a higher rebate, although the government has not yet decided the exact rate.
To ensure faster payments, exporters whose average quarterly exports are higher than those recorded in the previous year will receive 75% of their eligible rebate on a provisional basis. The final amount will be adjusted at the end of the fiscal year.
Exporters that fail to achieve their annual targets will be required to return the provisional payments within 15 days.
The ECC has also instructed the SBP to strengthen safeguards under the schemes. These measures will include setting financing limits for individual borrowers, improving access for small and medium-sized enterprises and promoting greater diversification of export products and markets.
The SBP will closely monitor the schemes to reduce the risk of misuse. Through the new package, the government aims to address shortcomings seen in earlier export subsidy programs and provide stronger support for sustainable export growth.