FBR proposes stringent steps to prevent Export Finance Scheme misuse

The Federal Board of Revenue (FBR) has proposed drastic changes to the Export Finance Scheme (EFS) to prevent misuse of the facility and tighten tax enforcement. At the outset, the FBR proposed withdrawing the facility for iron and steel scrap importers. The amendments were introduced through SRO204 of 2025 in the Customs Rules 2001. The draft amendments will be finalised within seven days after getting feedback from relevant stakeholders. Under the proposed amendment, the Engineering Development Board (EDB) approval mechanism was removed. The references to the EDB for approving engineering goods and input-output ratios have been removed after six months.