Pakistan's New Duty Drawback Rates (SROs 1908–1911): What Exporters Need to Do

For the first time since 2009, Pakistan has replaced its duty drawback rate schedules. On October 27, 2026, the Federal Board of Revenue (FBR) issued four notifications, SROs 1908, 1909, 1910 and 1911 of 2026. They set new refund rates for textile, leather, engineering and miscellaneous exports, and they replace the 2009 schedules (SROs 209 to 212 of 2009). Business Recorder reported that the new rates apply from October 27. Dawn reported that the revision follows the tariff rationalisation in the last budget.

Quick answer: If you export textile, leather, engineering or other listed goods made with imported inputs, check your product's new rate in the relevant SRO. Make sure the drawback claim is declared on your export goods declaration at the time of shipment. File the claim within 210 days of export, or within 180 days of the export payment shown on your bank credit advice.

Illustrative AI-generated image. It does not depict a specific office, exporter or document.

What is duty drawback, and what has changed?

Duty drawback refunds customs duty that an exporter paid on imported raw materials or inputs used to make goods that were then exported. It exists so exporters aren't taxed on inputs that end up leaving the country. In Pakistan, the refund is not calculated input by input. Each product has a fixed rate in an FBR schedule, expressed as a percentage of the f.o.b. export value.

What changed is the schedules themselves. The 2009 rates were set when tariffs on many inputs were higher. After the budget's tariff cuts, the duty actually paid on imported inputs fell for many products, so the refund rates have been reworked. Industry coverage summarising the new textile schedule (TexTalks, Pakistan Era) reports rates such as:

• 100% cotton grey fabric: 0.011%
• 100% cotton dyed or printed fabric: 0.450%
• Polyester-cotton dyed or printed fabric: 0.693%
• Hosiery: 1.784%
• Eligible acrylic blankets: 4.955%

The same reports cite engineering examples such as split air conditioners at 5.36% and motorcycle, scooter and rickshaw tyres at 1.45%. Treat these as examples only. Your rate depends on your exact product line in the schedule.

Which SRO applies to my products?

There are four schedules, one per product group:

• SRO 1908(I)/2026: textile and allied products (replaces SRO 209(I)/2009)
• SRO 1909(I)/2026: leather and allied products (replaces SRO 210(I)/2009)
• SRO 1910(I)/2026: engineering and allied products (replaces SRO 211(I)/2009)
• SRO 1911(I)/2026: miscellaneous products (replaces SRO 212(I)/2009)

Match your product by its HS code and description, not just its common name. Each row lists the finished good, its HS code and the raw materials it covers. A product that sounds similar may sit on a different line with a different rate.

Does it cover goods I exported before October 27?

The new schedules apply to goods exported from October 27, 2026 onwards. Shipments exported before that date fall under the arrangements in force when they were exported. If you have older claims still pending, check their status and deadlines with your customs agent rather than assuming the new rates apply.

How do I claim, and what are the deadlines?

According to the conditions reported from all four notifications, you need to meet three requirements:

1. Declare at export. Make the drawback declaration on the goods declaration filed under section 131 of the Customs Act, 1969, and on the other export documents, when the goods are exported. You can't add it after shipment.
2. Get the export payment. When the foreign exchange arrives, collect the bank credit advice (BCA) issued under State Bank rules. It shows the realisation date.
3. File on time. Submit the repayment application to the proper customs officer within 210 days of export, or within 180 days of the realisation date on the BCA, as the condition applies to your claim.

Most goods declarations are now filed digitally. Our PSW and ValidAP guide explains the filing system.

What is the most common way to lose a drawback claim?

Missing the declaration on the goods declaration at the time of export. Because the claim must be declared when the goods leave, an exporter who forgets cannot fix it later. The other common problem is a missed deadline, especially when export payments arrive late. With longer voyages and payment cycles this year, keep a simple tracker of each shipment's export date, BCA date and claim deadline.

Does drawback apply if I imported inputs duty-free?

Drawback repays duty that was actually paid. If your inputs came in duty-free under another arrangement, such as an export facilitation scheme, there is normally no paid duty to repay on those inputs. The schedules and the rules of each scheme decide how they interact, so confirm your case with your customs agent before filing.

Conclusion

The 2026 schedules end 17 years of the 2009 rates. For many textile products the refunds are small, while some engineering and specialised goods carry higher rates. Either way, the claim is only valid if it is declared at export and filed on time. Check your product's line in SROs 1908–1911, update your export documentation checklist, and track deadlines shipment by shipment. For other export questions, see our shipping FAQ and our import-export services.

Sources and reporting notes

• Business Recorder: FBR revises duty drawback rates on exports (October 30, 2026): the four SROs, effective date and claim conditions.
• Dawn: Duty drawback rates revised (October 30, 2026): reason for the revision.
• TexTalks (October 30, 2026) and Pakistan Era (November 2, 2026): example rates from the new schedules and the SROs replaced.
• Federal Board of Revenue: official SRO texts and schedules.

Information checked November 6, 2026. The schedules are published as scanned notifications; verify your product's line and rate against the official SRO before filing. This article is general information, not legal or tax advice.

Exporting textiles, leather or engineering goods? Contact Falcon Global Logistics and our team can check your export documentation before shipment.