NBR to Lift Restrictions on Local Raw Material Sourcing for 1,100 Non-Bonded Garment Exporters
The National Board of Revenue (NBR) plans to remove barriers preventing non-bonded garment exporters from sourcing raw materials locally via back-to-back letters of credit. This change, confirmed by NBR Chairman Abdur Rahman Khan, aims to benefit over 1,100 factories that currently face challenges in obtaining necessary inputs. A formal order will follow necessary legal amendments, with hopes to improve export capabilities for factories contributing approximately $6.5 billion in annual garment sales.

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.




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