Export facilitation scheme faces misuse allegations as MPs question billions in benefits without export growth

Alleged misuse of the Export Facilitation Scheme (EFS) and the failure to show a clear increase in Pakistan’s exports have raised

Islamabad: Alleged misuse of the Export Facilitation Scheme (EFS) and the failure to show a clear increase in Pakistan’s exports have raised serious questions in a parliamentary committee, which has demanded complete details of how the facility is being used, who is benefiting from it and whether it is delivering the promised results.

Members of the National Assembly Standing Committee on Finance and Revenue questioned the scheme’s financial use, working system and eligibility rules. They said the government must provide clear figures to prove that the facility is actually helping increase exports instead of simply giving import cost benefits to selected businesses.

The committee stressed that the success of the scheme must be judged through verified data showing its real contribution to export growth.

Minister of State for Finance and Revenue Bilal Azhar Kayani told the committee that the scheme was designed to help exporters by reducing the cost of imported raw materials used to manufacture goods for export. He assured members that a detailed presentation would be provided at the next meeting.

The presentation is expected to cover the scheme’s performance, financial utilisation, impact on exports, eligibility criteria and proposed reforms. Until those details are provided, questions about the alleged misuse and the actual benefits of the scheme remain unanswered.

The committee also reviewed the government’s Tajir Dost Scheme, which aims to bring more retailers into the tax system. Members expressed concern over the lower than expected response from shopkeepers, despite consultations with trade organisations and business representatives.

The Minister of State informed the committee that the deadline for filing tax returns under the scheme had expired on October 31. The government is now preparing to move into the enforcement phase.

Retailers who have not followed the scheme will face penalties, in addition to their legal duty to file tax returns. The minister said the government remained committed to expanding the tax base and implementing the scheme.

He also informed members that consultations had been held with the Attorney General for Pakistan and the Federal Board of Revenue (FBR) to make sure the planned enforcement action follows the law and proper procedures.

The detailed enforcement plan will be finalised and then submitted to the Prime Minister.

The committee’s discussion placed two major government schemes under scrutiny: one provides cost relief to exporters, while the other seeks to bring retailers into the tax system. In the case of the export scheme, members want proof that public policy benefits are producing actual export growth. In the case of the Tajir Dost Scheme, the government is preparing penalties after a weaker than expected response from retailers.

The committee also decided to postpone discussion on the Companies (Amendment) Bill, 2026, until its next meeting.