Exporters welcome removal of price cap under DLTL scheme

LAHORE: The federal government’s decision to remove the export price cap under the Drawback of Local Taxes and Levies (DLTL) Scheme has drawn appreciation from exporters, who termed the move a timely intervention to enhance Pakistan’s export competitiveness.

According to a notification issued on February 18, 2026, the government has withdrawn the earlier ceiling imposed on export prices for the purpose of calculating benefits under the DLTL regime. The development follows persistent representations by export bodies highlighting distortions created by the cap in an increasingly volatile global market.

In a letter addressed to the authorities, Shahzad Ali Malik Chairman Sectoral Council of Rice, Ministry of Commerce has expressed gratitude over the decision, stating that the removal of the export price cap would help align incentive calculations with actual market dynamics.

Malik, a former Chairman of the Rice Exporters Association of Pakistan (REAP) observed that swift intervention and resolution of the matter by the government demonstrate great commitment to encourage value-added exports. The removal of the cap reflects government’s vision of promotion of high-value, brand-driven exports in global markets, he added.

Sector representatives further observed that the latest decision signals the government’s willingness to engage constructively with stakeholders and address operational bottlenecks in export facilitation schemes. They expressed confidence that the measure would translate into improved export volumes and enhanced value addition in the coming months.

The DLTL Scheme was introduced to neutralize the impact of un-rebated taxes and levies on export-oriented sectors. Analysts believe that removing rigid pricing thresholds could encourage product upgrading and improve Pakistan’s positioning in higher-end market segments.

Industry sources termed the decision “supportive and pragmatic,” saying it would help restore exporters’ confidence at a time when global trade conditions remain.

Copyright Business Recorder, 2026