Duties and tax exemptions granted to Pakistani exporters under various schemes caused an estimated revenue loss of nearly Rs44 billion for the national exchequer during 2023-24, according to the Federal Board of Revenue’s (FBR) Tax Expenditure Report-2025.
The report highlighted nine export-related schemes and SROs that contributed to the shortfall. SRO.450(I)/2001 (Duty and Tax Remission for Exporters, DTRE) accounted for Rs734.66 million in revenue loss, while the Export Processing Zone under the same SRO led to Rs23 billion in forgone revenue.
Another SRO.450(I)/2001 category, the Manufacturing Bond Scheme, impacted the treasury by Rs712 million.
Temporary Import concessions under SRO.492(I)/2009 contributed around Rs17 billion in lost revenue, whereas SRO327(I)/2008 for Export Oriented Units resulted in Rs2 billion in revenue loss.
Other exemptions under SRO.326(I)/2008 and Chapter 99 of the Pakistan Customs Tariff, covering temporary imports of machinery, packing materials, excavation and scientific equipment, had negligible fiscal impact, the report noted.
The FBR report emphasizes the cumulative effect of these export facilitation measures on national revenue and provides a detailed account of the financial implications of incentives aimed at promoting exports.
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