ISLAMABAD — In a major move to accelerate national export growth and expand trade financing, the Economic Coordination Committee (ECC) of the Cabinet approved three dedicated Export Finance Subsidy Schemes during a high-level meeting chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb at the Finance Division.
The newly endorsed initiatives provide structured, low-cost financing and incentives designed to strengthen Pakistan’s export competitiveness and encourage active participation from small and medium-sized enterprises (SMEs).
Key Pillars of the Approved Export Package
- Enhanced Export Finance Scheme (E-EFS):
- Administered via EXIM Bank, the enhanced facility provides exporters with fixed, low-cost credit facilities to streamline export and import trade operations.
- Long-Term Export Growth Financing Facility (LTEGFF):
- A targeted long-term financing mechanism designed to support capital expenditure, industrial modernization, and capacity expansion for export-oriented industries.
- Performance-Linked Rebate on Incremental Exports:
- A direct incentive mechanism providing financial rebates to businesses that demonstrate measurable year-on-year growth in their export volumes.
Focus on SMEs and Six-Month Performance Review
A central objective of the approved financial package is the inclusion and enablement of the Small and Medium Enterprise (SME) sector. By lowering borrowing costs and easing liquidity constraints, the government aims to integrate smaller manufacturers into international supply chains.
To ensure accountability and measure economic impact, the ECC directed the relevant authorities to present a comprehensive performance evaluation report in six months to review the progress and efficacy of the newly launched schemes.
Additional Decisions Approved by the ECC
Beyond the export promotion package, the ECC deliberated on several key sectoral summaries:
- Arbitration Technical Grant: Approved a Technical Supplementary Grant (TSG) of Rs. 4 billion for the Power Division to manage expenses associated with international arbitration proceedings involving independent power producers (IPPs) and major utility shareholders.
- Pension Liabilities Transfer: Authorized the adjustment of pension liabilities for retired employees of closed Generation Companies (GENCOs) to their respective pension-disbursing Distribution Companies (DISCOs) to ensure uninterrupted disbursement of retirement benefits.
- Energy Sector Approvals: Declared the Pab reservoir in the Rehman-8 ST-3 well as a Tight Gas Reservoir under the Tight Gas Policy, 2011, and finalized gas tariff adjustments for RLNG-based power generation plants.
Overview of ECC Export Package
| Scheme / Initiative | Primary Administering Body | Key Objective | Target Beneficiaries |
| Enhanced EFS | EXIM Bank | Subsidized, fixed low-rate trade financing | Exporters & Traders |
| LTEGFF | Finance Division / EXIM Bank | Long-term capital growth financing | Industrial Exporters |
| Incremental Rebates | Federal Government | Performance-linked financial incentives | Growth-oriented exporters |