Federal Government Plans Performance-Based Export Incentives in Upcoming Budget

ISLAMABAD: The federal government has decided to give exports a central role in the upcoming fiscal year’s budget as part of efforts to strengthen Pakistan’s economy and address long-standing economic challenges.
The decision was discussed during a high-level meeting chaired by Federal Minister for Economic Affairs Ahad Khan Cheema. The meeting was attended by the Minister of State for Finance, the Governor of the State Bank of Pakistan, the Finance Secretary, and other key members of the economic team.
During the meeting, officials proposed introducing performance-based incentives aimed at boosting exports. Ahad Khan Cheema stated that reducing taxes alone is not enough to increase exports, emphasizing that the government is also focusing on infrastructure development and other structural improvements.
He said exporters would receive facilities and incentives directly linked to their performance and achievement of export targets. Special funds and measures are also expected to be approved in the budget to help small and medium-sized enterprises gain access to international markets.
The minister stressed the need for a sustainable export framework, saying Pakistan must diversify its export products and focus on value addition instead of relying solely on traditional exports. He added that institutions meeting government-defined export goals would receive maximum financial and administrative support.
Pakistan has long struggled with a trade deficit, as imports have consistently exceeded exports. Previous incentive programs were often criticized for being non-targeted and failing to significantly increase export volumes.
Officials believe that in the current economic environment — marked by global supply chain disruptions and rising fuel prices — an export-led growth strategy has become essential to stabilize foreign exchange reserves and strengthen the national economy.
Under the proposed framework, incentives will be tied to performance and achievement rather than simply doing business, a move aimed at discouraging dependency on subsidies alone.
The government also expects that integrating small businesses into global markets will create employment opportunities at the grassroots level and strengthen the country’s economic foundation.
Ahad Khan Cheema’s emphasis on infrastructure indicates that the upcoming budget may allocate significant funds to improve logistics, ports, and electricity supply systems to support export growth.