KARACHI – Web Desk: Pakistan has announced a comprehensive Rs 255 billion export package aimed at boosting foreign sales, despite ongoing geopolitical uncertainty in the region following US-Iran tensions, according to officials.
The government has approved three major incentive projects worth approximately Rs 98 billion for fiscal year 2027, with the overall package valued at over Rs 255 billion. The Economic Coordination Committee (ECC) has approved export financing schemes providing working capital loans to exporters at a fixed rate of 8.5% for six months, with the government providing Rs 58 billion in subsidies for FY 2027.
Under the Long-Term Export Growth Financing Facility, loans of up to Rs 350 billion will be available for new industrial projects and the purchase of modern machinery. Borrowers will be charged 2% interest for the first two years and 5% for the next eight years, with the remaining interest subsidized by the government.
Exporters who increase sales by up to 10% compared to last year will receive 1% of their additional export value as incentives, while those exceeding 10% growth will receive 2%. The scheme is estimated to cost approximately Rs 15 billion annually.
The announcement comes as S&P Global upgraded Pakistan’s sovereign credit rating from ‘B-‘ to ‘B’ with a stable outlook, citing IMF-supported economic reforms, fiscal discipline, and improved foreign exchange reserves. Pakistan’s economy still depends on IMF programs, China, and Saudi Arabia, making export growth and FDI essential for sustainable stability.
