Pakistan Doubles Duty-Free Import Window Under Export Facilitation Scheme

The Government of Pakistan has extended the utilization period under the Export Facilitation Scheme (EFS) from 9 months to 18 months, aiming to lower costs for exporters and strengthen export competitiveness, particularly for small and medium enterprises (SMEs).

Minister of State for Finance and Railways Bilal Azhar Kayani on Thursday explained that under the revised policy, exporters can continue to avail zero-duty and tax-free import of inputs, provided the goods are used within the extended 18-month timeframe.

An additional extension of up to six months beyond the 18-month period may be granted on a case-by-case basis by a designated committee. To prevent misuse of the scheme, a six-monthly reconciliation mechanism has also been introduced.

The policy revision was recommended unanimously by a technical committee after reviewing historical EFS data and regional practices. The changes have been approved by Prime Minister Shehbaz Sharif.

The committee noted that prior to the revision, 7,932 Goods Declarations (GDs) had exceeded the 9-month utilisation limit. With the extension, these declarations are now again eligible for export under the scheme.

The government has also introduced two additional facilitation measures: automatic replenishment of security deposits based on goods consumed and exported, and the right of appeal for EFS users before the Chief Collector against regulatory orders.

The reforms are intended to improve ease of doing business, reduce compliance delays, and support the country’s broader goal of export-led and private sector-driven economic growth.