Import & Export · Business & Trade

How to export from Pakistan, step by step

Register on PSW, link your bank, agree payment terms, file the export Single Declaration, ship, and bring the money home in 180 days. Export tax: 1.25%.

By Ahtisham Imtiaz · Updated · 4 min read

Export tax
1.25% (minimum)
Sales tax on exports
0%
Bring money back
Within 180 days
EIF / EFE forms
Replaced by PSW
Summarize it for me

AI Summary

To export from Pakistan you register your business with FBR, subscribe to Pakistan Single Window and link your bank account there. Agree a payment mode with your buyer; for LCs, advance payments and collections your bank sends the financial instrument to PSW. You then file the export Single Declaration, clear Customs and ship, and must bring the money back within 180 days or by the due date. Banks deduct 1.25% of the proceeds as a minimum tax, and exports carry 0% sales tax.

To export, you register on Pakistan Single Window (PSW) and link your bank, agree a payment mode with your buyer, then file an export Single Declaration, clear Customs and ship. Your bank brings the money in, and it must arrive within 180 days of shipment or by the agreed due date, whichever is earlier. Banks deduct 1.25% of the proceeds as tax, and exports carry 0% sales tax.

From order to money in the bank
  1. You Order and payment terms LC, advance, collection or open account
  2. Your bank Financial instrument to PSW Not needed for open account
  3. You Export Single Declaration Filed on PSW
  4. Customs Clearance and shipment Red, yellow or green channel
  5. Your bank Proceeds realised 1.25% tax deducted

What do I need before my first shipment?

  • A registered business with an NTN. See business structures compared.
  • A PSW subscription (Rs 500, NADRA biometrics), registered with Customs as a trader. See PSW registration.
  • A bank account linked to PSW by IBAN. Your bank keeps your trade profile; this replaced the old EIF and EFE forms.
  • Sales tax registration, if you want refunds of input tax. TDAP’s guide says commercial exporters don’t have to register, but it lets you claim back tax on local purchases.
  • Chamber of commerce and trade association membership, which TDAP lists for certificates of origin, and REX registration through TDAP if you export to the EU.

Check your goods aren’t banned for export first: see import and export licences.

How do I export, step by step?

  1. Agree the deal. Send a proforma invoice with the goods, HS code, price, Incoterm, delivery, currency and expiry date. The buyer can use it to open a letter of credit.
  2. Get the financial instrument registered. For an LC, contract or collection, or advance payment, your bank issues it and sends it to PSW. Open account exports need none.
  3. File the export Single Declaration on PSW: Single Declaration, Export, Create Declaration. Enter consignment details, packages, the financial instrument and delivery term, and the goods, upload documents, then Validate & Proceed.
  4. Clear Customs. Customs checks your declaration and packing list. The system routes each shipment to the red channel (goods examined and documents checked), yellow (documents only) or green (no examination).
  5. Ship and submit shipping documents to your bank within 14 days of shipment.
  6. Receive the money through your bank, which reports it to PSW.

Which payment mode should I use?

Mode How it works Risk to you
Advance payment Buyer pays before you ship Lowest
Letter of credit Buyer’s bank promises to pay against documents. See letters of credit. Low
Documentary collection (D/P or D/A) Bank releases documents on payment (D/P) or on acceptance to pay later (D/A) Medium
Open account You ship and send documents directly; buyer pays later (often 30, 60 or 90 days) Highest

New exporters, and those with small export histories, may ship on open account up to USD 100,000 per shipment, under the State Bank’s rules in the copy we could read.

How long do I have to bring the money back?

The State Bank’s export rules (Foreign Exchange Manual, chapter 12) require the full value to arrive:

  • by the due date or within 180 days of shipment, whichever is earlier
  • within 45 days for sight, D/P or CAD shipments
  • within 195 days where an irrevocable LC or the contract allows 180 days’ credit

Once proceeds arrive you can keep them in foreign currency for five working days before converting. The owners or directors who filed the declaration are personally responsible for bringing the money back.

What tax do exporters pay?

  • Income tax: banks deduct 1.25% of export proceeds under section 154, up from 1% before the Finance Act 2026, which also dropped an extra 1% advance tax. Since 2024 this is a minimum tax: you still file a return and pay more if tax at normal rates is higher.
  • Sales tax: exports are zero-rated. Registered exporters can claim back input tax, which FBR must refund within 45 days of a claim.
  • IT and IT-enabled services are taxed differently: see freelancer tax.

More guides: Import & Export.

Questions people ask

What is the export tax rate in Pakistan?

For tax year 2027, banks deduct 1.25% of export proceeds under section 154, up from 1% before the Finance Act 2026. Since 2024 this is a minimum tax: you file a normal return and pay more if your tax at normal rates is higher.

How long do I have to bring export money back to Pakistan?

Under the State Bank's rules, the full value must arrive on the due date or within 180 days of shipment, whichever is earlier; for sight or D/P shipments, within 45 days. We read these in a 2023 copy of SBP's manual, so confirm with your bank.

Do I need a financial instrument for every export?

Only for letters of credit, contracts or collections, and advance payments; your bank sends it to PSW. Open account exports need none.

Do exporters pay sales tax?

Exports are zero-rated. If you're registered for sales tax, you can claim back the input tax you paid on local purchases, which FBR must refund within 45 days of your claim.

What documents do I need to export?

Usually a commercial invoice, packing list, the goods declaration, a bill of lading or airway bill, and a certificate of origin, plus fumigation, phytosanitary or product certificates where required.

Sources

  1. Single Declaration: Export, Pakistan Single Window (accessed 7 Oct 2026)
  2. Elimination of EIF and EFE, Pakistan Single Window (accessed 7 Oct 2026)
  3. Foreign Exchange Manual, Chapter 12: Exports (archived copy, Feb 2023), State Bank of Pakistan (accessed 7 Oct 2026)
  4. Income Tax Ordinance, 2001 (amended up to Finance Act 2026), FBR (accessed 7 Oct 2026)
  5. Withholding Tax Rates Card, Tax Year 2027, FBR (accessed 7 Oct 2026)
  6. Sales Tax Act, 1990 (updated up to 30 June 2026), FBR (accessed 7 Oct 2026)
  7. The Customs Act, 1969, FBR (accessed 7 Oct 2026)
  8. Step-by-step guide for new exporters, TDAP (accessed 7 Oct 2026)
  9. Export Policy Order, 2022 (S.R.O. 544(I)/2022), Ministry of Commerce (copy hosted by TDAP) (accessed 7 Oct 2026)

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