2 min read
The Federal Board of Revenue has issued a new draft insurance guarantee format for exporters under the Export Facilitation Scheme, updating the rules to ensure smoother processing and stronger compliance. The draft includes formats for both irrevocable and unconditional guarantees, aiming to provide a clearer framework for exporters who rely on the scheme for duty free import of inputs.
The Export Facilitation Scheme, originally notified through SRO 957(I)/2021, was introduced to support export oriented businesses by simplifying procedures and reducing financial bottlenecks. Over time, exporters and industry groups had sought clearer guidelines on insurance backed guarantees, prompting the FBR to revise and expand the guarantee structure.
According to the draft, an insurance guarantee must be issued by a Commerce Ministry registered insurance company with at least an “AA” rating from the Pakistan Credit Rating Agency. The updated format applies to a wide range of users, including manufacturers cum-exporters, commercial exporters, indirect exporters, vendors, common export houses and international toll manufacturers.
An official familiar with the development said the new draft aims to
“ensure transparency, reduce delays and make enforcement more reliable under the scheme.”
The FBR has invited stakeholders to review the draft on its website and provide feedback before final approval, signalling the government’s intention to streamline export regulatory processes and support Pakistan’s competitiveness in global markets.
