The Federal Board of Revenue (FBR) is introducing a series of high-stakes changes to Pakistan’s customs and export laws through two major draft notifications, SRO 211(I)/2026 and SRO 517(I)/2026. These amendments are designed to capitalise on current regional trade disruptions by positioning Pakistan as a global logistics hub while modernising how local exporters operate.
The most significant shift for the business community is the move from a manual, permission-based system to an automated, system-driven one. Under the new Export Facilitation Scheme (EFS) rules, exporters who have successfully utilised and exported their initial quota of goods will now see the system automatically allow further duty-free imports of raw materials. This replenishment is capped at the value of materials already consumed and exported, provided the goods match the descriptions and codes previously determined by the Input-Output Coefficient Organisation (IOCO). This change effectively removes the liquidity crunch for high-performing exporters, as they will no longer need to wait for repeated manual authorisations to continue their production cycles.
However, this increased ease of business comes with much stricter reporting and transparency requirements. Businesses benefiting from these facilities must now submit a comprehensive reconciliation report every six months. These reports must account for all details of imported raw materials, the volume of manufactured goods versus exports, local sales figures, and the specific percentage of value added. A critical new focus has been placed on “wastage”; companies must now provide precise information on raw materials lost during production and prove how that waste was disposed of or utilised. These reports must be filed within 30 days of the end of the six months, or businesses risk immediate suspension from the scheme.
Simultaneously, the FBR is overhauling International Transshipment rules to attract cargo diverted by the ongoing crisis in the Middle East. For the first time, foreign cargo will be allowed to be stored at “off-dock terminals” and “notified temporary storage areas” rather than just at congested on-dock port areas. The rules have also been expanded to include multi-modal transport, covering both sea and air cargo. To maintain security, all such cargo will be subject to 100% scanning. In a major policy shift, the FBR has made shipping lines and airlines strictly liable for any pilferage or misdeclaration; if cargo goes missing or is found to be incorrectly declared, the carriers themselves must pay all applicable duties and taxes immediately.
The broader impact for the business community is twofold. While manufacturers will see a boost in competitiveness due to reduced upfront costs and faster system-based approvals, they must now invest more heavily in internal compliance and audit teams to meet the FBR’s aggressive new reporting deadlines. For the logistics sector, the opening of off-dock terminals for international cargo represents a massive opportunity to earn foreign exchange through handling and storage fees, provided they can meet the high security and scanning standards now required by law.
