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The National Board of Revenue (NBR) is set to eliminate restrictions on local raw material sourcing for non-bonded garment exporters, allowing them to utilize back-to-back letters of credit. This initiative is expected to assist over 1,100 factories that rely on local inputs, contributing around $6.5 billion in annual exports.

A legal amendment process is underway, with NBR officials preparing a summary for finance ministry approval. The NBR aims to mitigate irregularities through automation and data integration among relevant institutions. Currently, non-bonded exporters face challenges in sourcing materials, often purchasing at higher prices due to banking restrictions and VAT complications.