The minister of State for Railways and Finance & Revenue Bilal Azhar Kayani said that the Government of Pakistan has increased the utilization period under the Export Facilitation Scheme (EFS) from 9 months to 18 months. This essentially means that exporters can now avail zero duty and import stage taxes for imported inputs provided that they are used within 18 months (previously this period was 9 months). The longer utilisation period will help reduce the cost for our exporters and will particularly help our SME exporters.
An additional extension for 6 months, beyond the 18 month utilisation period, will be considered by a Committee on a case-by-case basis. A six-monthly reconciliation statement will help safeguard the EFS scheme from abuse.
He further said that he would like to express his gratitude to colleagues from FBR and the Ministry of Commerce, and to partners from the private sector including Mr. Fawad Anwar (PTC), Mr. Khurram Mukhtar (PTE), and Mr. Kamran Arshad (APTMA) for working with him in the Technical Committee which unanimously recommended these policy changes to the Honourable Prime Minister.
He said he is especially grateful to the Prime Minister for approving the Committee’s recommendations.
The Committee studied and considered historical EFS data and utilisation period benchmarks of regional peers before arriving at its unanimous recommendations.
Before this policy change, there were a total of 7,932 Goods Declarations (GDs) of EFS users’ input goods, which had exceeded the allowed 9-month period. After the policy change to the 18 month utilisation period, all of these GDs are now again eligible for exports under EFS.
Bilal Azhar Kayani further said that two additional improvements have also been made. that is Automatic replenishment of the amount of security deposit to the extent of the amount of goods consumed and exported, which will save exporters time and second is EFS users have been given the right of appeal with the Chief Collector against the orders of regulatory collector.
Under the leadership of Prime Minister, our government is committed to achieving export-led, private sector-led, sustainable economic growth for Pakistan.
