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Karachi, April 20, 2025 – In a major move to stimulate the country’s export sector, the Federal Board of Revenue (FBR) has granted a massive exemption of Rs 127 billion in customs duty under various export facilitation schemes.

According to the FBR’s latest Tax Expenditure Report 2024, the exemptions were primarily extended to support a range of exports-oriented activities. These exemptions were issued under multiple statutory regulatory orders (SROs) and targeted different sectors involved in the promotion and facilitation of exports.

Breakdown of the exemption includes Rs 34.46 billion granted under SRO 327(I)/2008 for Export Oriented Units, and Rs 23.48 billion under SRO 450(I)/2001 for operations in Export Processing Zones (EPZ). Additionally, Rs 23.21 billion worth of exemption was provided under the Export Facilitation Scheme, aiming to streamline and accelerate the exports process for approved businesses.

Another significant share of the exemption, amounting to Rs 20.44 billion, was offered under the Manufacturing Bond scheme, while the Duty and Tax Remission for Exports (DTRE) regime accounted for Rs 7.13 billion. Temporary import provisions under various SROs contributed over Rs 18 billion in exemptions, facilitating the import of machinery, equipment, and packaging material strictly for exports.

The FBR stated that these measures are designed to reduce the cost of doing business for exporters, enhance global competitiveness, and encourage value-added exports. The revenue authority also highlighted the importance of facilitating sectors that are aligned with the country’s broader economic goals, including job creation and foreign exchange earnings.

This substantial exemption is part of the government’s broader policy to boost industrial growth by providing relief on raw materials and intermediate goods used in manufacturing for exports. While the FBR is under pressure to meet revenue targets, it maintains that such strategic exemptions are necessary to achieve long-term economic stability and trade expansion.

The FBR will continue monitoring the impact of these incentives and may revise policies to ensure maximum benefit for the national economy and the export sector.