Exporters can receive a 1% or 2% rebate on incremental exports under the new performance-based incentive from July 1, 2026.
KARACHI: The State Bank of Pakistan (SBP) has notified the procedure for exporters to claim a new performance-based rebate on incremental exports, with eligible exporters able to receive a rebate of up to 2% of additional export value.
The central bank announced the mechanism through a communication to presidents and chief executive officers of all banks, setting out eligibility requirements, payment procedures and documentation for the Performance Based Rebate on Incremental Exports (PRIE) scheme.
Introduced by the Government of Pakistan, the scheme will take effect from July 1, 2026, and is aimed at encouraging exporters to increase their export performance compared with the preceding fiscal year.
Exporters eligible for rebate
The scheme covers exporters of both goods and services.
Under the notified criteria, exporters recording annual export growth of up to 10% over their exports in the preceding fiscal year will qualify for a rebate equivalent to 1% of incremental exports.
Exporters achieving annual growth of more than 10% will qualify for a 2% rebate on incremental export value.
However, exporters recording no annual growth compared with the preceding fiscal year will not qualify for the incentive.
75% rebate to be paid quarterly
The SBP has introduced a quarterly payment mechanism under which eligible exporters can receive 75% of their applicable rebate on a provisional basis.
For each quarter, exporters will qualify for the provisional payment when their exports exceed their average quarterly exports during the preceding fiscal year.
The first three quarterly payments will be provisional and limited to 75% of the computed entitlement. The remaining amount will be settled after the end of the fiscal year.
At the end of the fourth quarter, the exporter’s full-year performance will be assessed. If annual exports exceed the previous year’s exports, the final rebate will include the applicable fourth-quarter amount and the residual rebate from the first three quarters.
If full-year exports are equal to or below the preceding year’s level, provisional payments made during the first three quarters will be recovered by the designated bank and remitted to the SBP within 15 days of the close of the year.
Rebate calculated on incremental exports
The rebate will be paid in Pakistani rupees and calculated only on incremental exports.
For determining the rupee value, the SBP’s weighted average customer exchange rate (buying) published on the date of payment will be used.
Export proceeds realised in currencies other than the US dollar will be converted into US dollar equivalents using the applicable conversion rate on the date the proceeds are realised.
The export year under the scheme will run from July 1 to June 30.
Exporters must nominate designated bank
Each exporter will be required to nominate a designated bank to consolidate all export proceeds realised through different banks during a quarter.
The designated bank will submit the consolidated rebate claim to the Financial Inclusion Support Department (FISD) of SBP Banking Services Corporation.
Claims must be checked, verified and signed by the designated bank’s Chief Internal Auditor and Chief Compliance Officer before submission.
Quarterly claims must be lodged on the prescribed form within one month of the close of the relevant quarter, while annual claims must be submitted within three months of the close of the fiscal year.
The FISD will process claims on a first-come, first-served basis.
Claims require export documentation
The SBP has prescribed a claim form for exporters seeking the rebate.
Claims must be supported by Electronic Proceeds Realisation Certificates (e-PRCs) issued by authorised dealers for export proceeds realised during the relevant period.
Each rebate claim must also be accompanied by a Demand Promissory Note executed by the exporter in favour of the bank and endorsed in favour of SBP BSC/FISD.
Exporters must certify that the information provided in their claims is accurate and supported by their books of accounts, shipping documents and e-PRCs.
They must also confirm that the same export performance has not previously been claimed under the scheme.
Excess payments subject to recovery
The SBP has clarified that quarterly payments are provisional and subject to annual adjustment.
If the final annual calculation shows that an exporter received more than its eligible rebate, the excess amount will have to be refunded or recovered through adjustment against future claims or accounts.
The rebate may also be revoked if the SBP detects incorrect information, misdeclaration or violations of the scheme’s conditions.
Exporters must retain original shipping documents, e-Forms and e-PRCs relevant to their claims for verification or audit by the SBP.
Banks have been directed to disseminate details of the scheme among their customers and provide the necessary support for its effective implementation.
The new incentive mechanism is intended to reward exporters that expand their foreign exchange earnings and encourage stronger export growth during the fiscal year.