Government extends EFS utilisation period to 18 months to support exporters

ISLAMABAD: The government has doubled the utilisation period under the Export Facilitation Scheme (EFS) from nine months to 18 months, providing exporters with additional time to use imported zero-duty, tax-free inputs and easing cost pressures on the export sector.

The decision was taken following the recommendations of a technical committee headed by Minister of State for Finance Bilal Azhar Kayani. The committee, which also included representatives from the private sector, unanimously recommended the proposed policy changes.

FBR issues customs notification

The Federal Board of Revenue (FBR) has issued customs notification SRO528 of 2026 to amend the Customs Rules 2001, replacing the earlier nine-month utilisation limit with 18 months. The revised rules are effective from March 7, 2025.

Bilal Azhar Kayani stated on his X handle that under the revised framework, exporters can now import inputs duty-free and utilise them within the extended period.

Move aimed at easing financial constraints

The extension of the utilisation period is intended to support exporters who face financial and production constraints. The longer timeframe is expected to reduce financial pressures on the export community, allowing businesses greater flexibility in managing their production cycles and input procurement.

The Export Facilitation Scheme allows exporters to import raw materials and inputs without paying customs duties and taxes, on the condition that these inputs are used in the manufacturing of goods meant for export within a specified period. The previous nine-month window had been seen as a constraint, particularly for exporters dealing with longer production timelines or supply chain disruptions.

By extending this window to 18 months, the government aims to provide a more supportive environment for export-oriented businesses, helping them remain competitive in international markets while managing their operational costs more effectively.

The unanimous recommendation by the technical committee, which brought together both government officials and private sector stakeholders, reflects a consensus on the need for such a policy adjustment to bolster Pakistan's export growth.