Export scheme misuse hits Rs 10.9 billion, FBR recovers only Rs 959 million so far

The Federal Board of Revenue has detected discrepancies amounting to Rs 10.9 billion in 107 cases involving Pakistan’s Export Facilitation

Islamabad:  The Federal Board of Revenue has detected discrepancies amounting to Rs 10.9 billion in 107 cases involving Pakistan’s Export Facilitation Scheme, but has recovered only Rs 959 million so far, while most cases remain before courts and other legal forums.

The figures were presented to the Senate by Finance Minister Muhammad Aurangzeb in response to a question from Senator Haji Hidayatullah Khan about the misuse of the scheme, the goods involved, the resulting losses and action against exporters and officials since the 2024 to 25 financial year.

According to the minister’s reply, the discrepancies were found among 1,940 users of the Export Facilitation Scheme during 2024 to 25 and July to December of the 2025 to 26 financial year. The 107 cases represent about 5.5 per cent of the total users covered by the figures.

The government has not described all the reported discrepancies as final proven losses. It said legal action had been taken under the Customs Act, 1969, and the relevant rules. Most cases are still being heard by different legal forums, and their final outcomes remain pending.

The goods involved in the cases include textiles, plastic packaging, pharmaceutical products, iron and steel scrap, frozen meat, coal and leather. The reply did not provide a separate breakdown showing how much of the Rs 10.9 billion discrepancy was linked to each type of goods.

The Export Facilitation Scheme was introduced to make exporting easier by bringing earlier arrangements, including Duty and Tax Remission for Exports and Export Oriented Units, into one system. The scheme was issued through SRO 957(I)/2021 on July 30, 2021.

The FBR later introduced additional safeguards to reduce misuse while allowing genuine exporters to continue benefiting from the facility. These changes were issued through SRO 301(I)/2025 on March 7, 2025, and SRO 1435(I)/2025 on August 5, 2025.

The minister said the FBR regularly monitors the scheme through its Customs field offices to identify and prevent misuse by those seeking to take improper advantage of the facility. The new safeguards were introduced as part of efforts to protect the scheme while keeping it available for exporters who follow the rules.

However, the government has not yet determined whether any officials were involved in the reported cases. The minister said the role of government functionaries, if any, would be established after the cases were finalised and legal proceedings concluded.

The Senate reply therefore points to a major financial discrepancy under the export support scheme, but the amount finally established as recoverable and the responsibility of individual exporters or officials will depend on the outcomes of the pending proceedings.