PM Shehbaz Abolishes Export Progress Surcharge, Orders EDF Overhaul
ISLAMABAD: Prime minister Shehbaz Sharif announced the immediate removal of the 0.25% Export Development Surcharge (EDS) on Monday, a move designed to alleviate pressure on Pakistani exporters and bolster the nation’s standing in global markets.
The decision followed a meeting led by the Prime Minister, where proposals from a dedicated working group focused on the EDS were thoroughly reviewed. A key advice, accepted by the Premier, was the elimination of the surcharge to improve the export sector’s competitiveness.
According to an official statement from the Prime Minister’s Secretariat, the EDS on domestic exports has been abolished with immediate effect.Furthermore, the Prime Minister directed a comprehensive review and subsequent reform of the Trade Development Authority of Pakistan (TDAP).
The initial impetus for these changes came from a dedicated Working Group on the Export Development Surcharge (EDS), convened by Musadaq Zulqarnain. The group comprised private sector representatives including Shahzad Saleem,Misbah Naqvi,Khurram Mukhtar,Arif Saeed,Ahmad Umair,and Sualeh Faruqi,alongside State Minister for Finance Bilal Azhar Kiyani and Secretary Commerce Jawad Paul.
The group’s Terms of Reference (TORs) centered on evaluating the effectiveness of current Export development Fund (EDF) projects and proposing strategies to enhance the competitiveness of Pakistani exporters. Last week, the Working Group presented its findings and recommendations to the Prime Minister following extensive discussions and consensus-building.
Directs EDF money must be spent on boosting competitiveness of Pakistani goods on world markets
PM Shehbaz issued specific instructions for a third-party audit of the EDF,covering the past five years and adhering to international auditing standards. he stressed that the fund’s resources should be dedicated to strengthening domestic exports, supporting relevant research and development initiatives, providing skills training for the sector’s workforce, and establishing world-class facilities. He explicitly stated that any misuse of the fund would be unacceptable.
To ensure responsible allocation of the Rs52 billion currently available in the EDF, an interim steering committee, led by the private sector, will be established. This committee will prioritize projects directly contributing to export enhancement, focusing exclusively on research and development and skill development – excluding infrastructure spending.
The meeting also addressed the issue of the high tax burden faced by exporters,which currently exceeds that imposed on domestic businesses. A separate working Group,under the convenorship of Shahzad Saleem,has already submitted recommendations addressing this tax imbalance.The Prime Minister has also instructed the appointment of a qualified private sector chairman to oversee the optimal utilization of the EDF’s resources.
The Prime Minister reaffirmed his commitment to promoting and marketing pakistani export products globally, emphasizing that providing maximum support to industrialists to increase domestic exports remains a top government priority.
Published in Dawn, November 25th, 2025 – 2025-11-25 03:31:00
