State Bank of Pakistan Circular No. 05 of 2026 introduces a Performance Based Rebate on Incremental Exports from 1 July 2026. Goods and services exporters—including eligible IT and digital-service businesses—can qualify for a 1% or 2% rebate on the increase over the preceding fiscal year, subject to quarterly provisional payment and annual reconciliation.
Swipe or scroll through all 2 images. Official documents are unedited; planning concepts and contextual images are clearly labelled.
Growth is measured against the preceding fiscal year's exports. The rebate rate applies to incremental export value only.
| Full-year export result | Published rebate rate | Rebate base | Outcome |
|---|---|---|---|
| No growth | 0% | None | Not eligible; provisional quarterly payments are recoverable |
| Growth up to 10% | 1% | Incremental exports | Eligible subject to annual reconciliation |
| Growth above 10% | 2% | Incremental exports | Eligible subject to annual reconciliation |
These examples demonstrate the circular's formula. PKR amounts are illustrations, not claim estimates for a specific exporter.
| Previous-year exports | Current-year exports | Growth | Increment | Rate | Illustrative rebate |
|---|---|---|---|---|---|
| PKR 10 Crore | PKR 10.50 Crore | 5% | PKR 50 Lakh | 1% | PKR 50,000 |
| PKR 10 Crore | PKR 11 Crore | 10% | PKR 1 Crore | 1% | PKR 1 Lakh |
| PKR 10 Crore | PKR 12 Crore | 20% | PKR 2 Crore | 2% | PKR 4 Lakh |
| PKR 10 Crore | PKR 9.80 Crore | No annual growth | None | 0% | No entitlement; provisional amounts recoverable |
A quarter must exceed the preceding year's average quarterly exports before the circular's 75% provisional disbursement can apply.
| Stage | SBP rule | Exporter action |
|---|---|---|
| Quarterly threshold | Current quarter exceeds prior-year average quarter | Reconcile bank export proceeds and the correct comparison base |
| Provisional payment | 75% of the applicable rebate is disbursed | Record it as provisional rather than final income |
| Full-year growth confirmed | Last-quarter rebate plus residual from earlier quarters becomes payable | Match the bank calculation with the annual export ledger |
| Full-year growth not achieved | Earlier provisional rebates are recovered | Maintain liquidity; the designated bank must return recovered funds to SBP within 15 days |
The circular refers to an implementation mechanism and claim form. Confirm the current documentary package with the designated bank before submission.
| Record | Why it matters | Control |
|---|---|---|
| Preceding fiscal-year export ledger | Establishes the comparison base | Reconcile with bank and regulatory export records |
| Current quarterly and annual exports | Determines threshold, growth and increment | Separate realized export proceeds from invoices not yet recognized |
| Goods or services classification | The scheme covers both, but documentation can differ | Use the category accepted by the designated bank |
| Designated-bank calculation | Bank processes disbursement and any recovery | Obtain a written calculation showing base, increment, rate and provisional portion |
| Claim form and supporting evidence | Incomplete claims may delay processing | Use the latest SBP/bank form and retain submission acknowledgement |
| Recovery reserve | Quarterly receipts can be reversed at year-end | Do not distribute or spend the full provisional amount without a buffer |
Yes. SBP Circular No. 05 of 2026 expressly says exporters of goods as well as services are eligible. Actual payment still depends on growth, documentation, bank processing and annual reconciliation.
No. The published rate applies only to the incremental export value achieved over the preceding fiscal year's exports.
The circular places growth of up to 10% in the 1% rebate band. The 2% band starts only when annual growth is more than 10%.
No. The circular describes a 75% quarterly disbursement and a full-year adjustment. If annual exports do not exceed the preceding year, earlier provisional payments are recovered.
A qualifying services exporter may be within the stated eligibility, but it should confirm accepted export evidence, designated bank, claim form and service classification before treating any amount as receivable.
The Government of Pakistan scheme is effective from 1 July 2026, while SBP published Circular No. 05 of 2026 on 24 August 2026.
The Government of Pakistan introduced PRIE to reward exporters whose full-year exports grow above the preceding fiscal year. SBP directed banks to support implementation. The scheme covers goods and services exporters, making the update relevant not only to manufacturers but also to eligible software houses, IT exporters, agencies and other service-export businesses.
PRIE is calculated on the increase, not the entire export turnover. If exports rise from PKR 10 Crore to PKR 11 Crore, the increase is PKR 1 Crore. Because 10% growth falls in the up-to-10% band, the illustrative rebate is 1% of PKR 1 Crore, or PKR 1 Lakh—not 1% of PKR 11 Crore.
An exporter whose current quarter exceeds the preceding year's average quarter can receive 75% of the applicable rebate provisionally. That is a cash-flow benefit, but not a final entitlement. If full-year exports are flat or lower, the designated bank must recover earlier provisional payments. Businesses should therefore keep a reconciliation ledger and liquidity buffer.
The circular confirms broad services-exporter eligibility but does not make every foreign-client invoice an automatic approved claim. The exporter should match its export classification, realized proceeds, designated bank records, comparison period and claim package before forecasting the rebate.
PRIE can improve marginal cash flow for a growing exporter, but it should not be presented as guaranteed profit, a tax refund or financing. The final outcome depends on verified export growth, the official implementation mechanism, complete claims, designated-bank processing and year-end adjustment. Use the scheme in forecasts only after applying a recovery reserve.
This FPN report explains SBP Circular No. 05 of 2026 and uses simplified examples for education. It is not tax, accounting, banking or legal advice and does not confirm eligibility for a particular exporter. Obtain the latest circular, annexures, claim form and a written computation from the designated bank, and consult qualified advisers before recognizing or spending a rebate.
Verified on 25 August 2026 against State Bank of Pakistan SH&SFD Circular No. 05 of 2026, published 24 August 2026. The circular makes goods and services exporters eligible, sets a 1% rebate where full-year export growth is up to 10%, and a 2% rebate where growth is more than 10%; in both cases the percentage applies only to incremental export value, not total exports. It provides for 75% provisional quarterly disbursement where quarterly exports exceed the preceding year's average quarterly exports. Final entitlement is reconciled annually; if full-year exports do not exceed the prior year, designated banks must recover provisional payments and remit them to SBP within 15 days after year-end. FPN's numerical examples are independent illustrations of the published formula, not SBP claim approvals, tax advice or guaranteed payments. Information may change after publication; always obtain the latest official document before acting.
Friends Property Network is not responsible for project delays, non-delivery, possession delays, escalation or developer-imposed charges, approval changes, investment loss or developer default. Conduct independent legal, financial and technical due diligence before investing.