KARACHI, August 3, 2026: The Pakistan government has announced a major export support package worth more than Rs255 billion aimed at increasing exports, strengthening industrial activity and supporting businesses through financial incentives and subsidised lending facilities.
The package includes three major incentive programmes approved for fiscal year 2026-27, with an estimated government cost of around Rs98 billion.
The move comes as Pakistan’s economy shows signs of improvement, with global rating agency S&P Global upgrading the country’s sovereign credit rating from CCC+ to B- and maintaining a stable outlook. The improvement has been linked to economic reforms, fiscal discipline and better foreign exchange reserves supported by the International Monetary Fund (IMF) programme.
Exporters to Receive Subsidised Financing
Under the Export Finance Scheme, exporters will receive working capital loans for six months at a fixed interest rate of 8.5%, with the government allocating around Rs58 billion in subsidies for fiscal year 2026-27.
The financing facility is designed to provide exporters with easier access to funds and improve their competitiveness in international markets.
Rs350 Billion Loans for Industrial Expansion
Under the Long-Term Export Growth Financing Facility, businesses will be able to access loans of up to Rs350 billion for new industrial projects and the purchase of modern machinery.
Borrowers will pay an interest rate of 2% during the first two years and 5% for the following eight years, while the government will bear the remaining interest cost.
The scheme also includes export performance incentives. Companies increasing exports by up to 10% compared with the previous year will receive an incentive equal to 1% of additional export value, while those achieving more than 10% growth will receive a 2% incentive.
The government is estimated to spend around Rs15 billion annually on this export growth incentive programme.
Government Shifts Focus Toward Export-Led Growth
The fiscal year 2026-27 budget has also introduced several measures aimed at supporting export-oriented sectors.
Economic experts said the government’s decision to redirect resources from remittance-related incentives toward export industries could help improve industrial production, employment generation, tax revenues and long-term foreign exchange earnings.
Analysts, however, noted that Pakistan’s economy continues to rely on external support, including the IMF programme and financial cooperation from China and Saudi Arabia. They said expanding exports and attracting foreign direct investment (FDI) remain critical for achieving sustainable economic stability.
Exporters Urged to Expand Markets and Add Value
Experts said the government has provided exporters with financing support, tax relief and other incentives, but businesses must focus on accessing new international markets, improving product quality and increasing value-added exports.
They said stronger export growth could help Pakistan reduce dependence on external financing programmes and build a more sustainable economic future.
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