KARACHI: A new initiative known as the Performance Based Rebate on Incremental Exports (PRIE) was introduced by the federal government for exporters who manage to register growth of up to 2 percent above their export level recorded in the previous fiscal year. According to details available with the ministry, the PRIE scheme will be initiated from July 1, 2026. This new program aims to stimulate exports in the country.
PRIE: How the Rebate Will Be Calculated
The rebate shall be granted solely in PKR on incremental exports. The weighted average customer exchange rate (buying), which is published by the State Bank of Pakistan (SBP) on its website on the date of rebate payment, will be used to determine the rebate amount in PKR.
As per the State Bank of Pakistan (SBP), all exporters, whether of goods or services, would become eligible to enjoy benefits through this program. With the launch of PRIE to boost exports from various sectors, the eligibility criteria have been kept general rather than being limited to particular industries only.
The rebate will be based on export performance. An exporter whose yearly exports have seen growth between 0 percent and 10 percent relative to the previous fiscal year's exports would earn a rebate worth 1 percent of the incremental export value earned in the year. An exporter whose yearly exports have witnessed growth above 10 percent compared to the previous fiscal year's exports would receive a rebate equal to 2 percent of the incremental export value. Every export year would commence on July 1 and end on June 30 of every year. Exporters who witness no growth in yearly exports would fail to qualify for any benefit under this program.
The calculation of the rebate will be done based on the incremental revenue earned via exports in foreign currencies. In case of export revenues earned in foreign currencies apart from the US dollar, these will be converted into their equivalent USD value according to the prevailing exchange rate.
In accordance with the payment process, exporters exporting goods exceeding their quarterly average exports for the previous year in any quarter shall receive an initial installment of 75 percent of the relevant rebate amount against performance milestones. Quarterly payments shall be deemed provisional until the end of the year when final adjustments are made.
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In the event that the annual exports of any exporting entity are higher than the exports recorded in the previous year, such exporting entity will receive its quarterly rebate payment along with the balance of the rebate entitlement for the past three quarters. In case annual exports do not rise above the previous year's level, then the provisional rebates received throughout the preceding three quarters will be recovered by the respective banks of these exporting entities within 15 days of the conclusion of the financial year.
The State Bank of Pakistan (SBP) has directed the banking community to share information about this scheme with their clients and ensure proper coordination in implementing the same. With the start of PRIE, which aims to increase export volume from the country, it will become crucial for banks to assume a key operational responsibility within the framework of the program.
The rebate claim must be authenticated, checked, verified, and endorsed by the Chief Internal Auditor and Chief Compliance Officer of the designated banks. This will add an extra element of oversight to the entire claims process.
Rebate claims for every year must be made within three months after the end of the financial year. The FISD will handle rebate claims on a first-come-first-served basis. Therefore, prompt filing of the claim might become significant for exporters seeking prompt refunds.