Export Bonus Scheme

The Export Bonus Scheme (EBS) was a dual exchange rate system implemented by the government of Ayub Khan from 1959 to 1972. It was introduced to address foreign exchange shortages and support industrialization. In practice, it amounted to an effective devaluation of the Pakistani rupee for selected sectors. Although the EBS increased manufactured exports, it was later criticized for creating inefficiencies, distorting resource allocation, and widening regional income disparities between West Pakistan and East Pakistan (now Bangladesh).

This article is issued from Wikipedia. The text is available under Creative Commons Attribution-Share Alike 4.0 unless otherwise noted. Additional terms may apply for the media files.