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Pakistan Weighs Performance-Based Export Incentives Ahead of Budget

Officials plan stakeholder consultations before selecting measures for the federal spending plan.

Overview

  • A high-level government meeting led by Economic Affairs Minister Ahad Cheema reviewed export-promotion options for the coming budget and set a plan to refine them with stakeholders.
  • Senior officials from finance, the State Bank, the Federal Board of Revenue and the Commerce Ministry took part, alongside economists Ijaz Nabi and Stefan Dercon.
  • Proposals under review include performance-based rebates and incentives tied to incremental export growth that would reward firms for meeting set targets.
  • Participants emphasized value addition, a broader product mix and bringing small and medium firms into global value chains to sustain export gains.
  • Officials also called for trade facilitation, better infrastructure and simpler business rules to make any incentives work as intended.