Key points
- Export Development Surcharge abolished with immediate effect
- Five-year third-party audit ordered for the Export Development Fund
- Trade Development Authority of Pakistan to undergo overhaul
- Private-sector chairman to lead EDF board
ISLAMABAD: Pakistan to ease pressure on exporters while overhauling key trade institutions, as Prime Minister Shehbaz Sharif ordered the immediate abolition of the Export Development Surcharge (EDS).
Chairing a working group meeting on Monday, the Prime Minister also ordered a wide-ranging audit of the country’s Export Development Fund (EDF). Officials announced the decisions after a review meeting in Islamabad on proposals to increase export volumes and improve Pakistan’s competitiveness in global markets.
The meeting, reported by the state-run Associated Press of Pakistan, evaluated submissions from a sub-working group established to identify structural obstacles in the export sector. Sharif emphasised that the EDF must be used solely to support export promotion, research and development, skills training for export-oriented workers, and the provision of modern facilities. He warned that misuse of the fund would not be tolerated and directed an independent audit of EDF operations covering the past five years according to international standards.
A portfolio of governance reforms was also outlined. According to the officials, the Prime Minister ordered a restructuring of the Trade Development Authority of Pakistan, directing it to enhance its global outreach and marketing capabilities. He also instructed that a private-sector professional be appointed as chairman of the EDF board to ensure more effective oversight of financial resources.
The reforms come amid sustained economic pressure on Pakistan to lift foreign-exchange earnings through higher, diversified exports. Officials say abolishing the EDS removes an additional cost burden that had weakened the competitiveness of Pakistani products in international markets. Analysts note that the policy shift aligns with the government’s stated ambition to attract foreign investment, strengthen export-led industries, and restore confidence across the trade ecosystem.
Without elaborating on the implementation timelines for the audit and restructuring package, the government maintains that facilitating exporters and projecting Pakistan’s products into global supply chains remain priority commitments as the country works to stabilise its economy.
