Prime Minister Shehbaz Sharif on Monday abolished the 0.25 percent Export Development Surcharge (EDS) to ease pressure on exporters. The move aims to strengthen Pakistan’s global competitiveness. Officials said it will reduce costs and encourage international trade growth.
The decision followed a review by a dedicated working group, led by Musadaq Zulqarnain, including private sector experts and government officials. The group evaluated the Export Development Fund (EDF) and proposed measures to enhance exporter competitiveness. Their recommendations emphasized the removal of EDS and prioritizing research and workforce skill development.
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PM Shehbaz also ordered a third-party audit of the EDF for the past five years. He instructed that funds be used strictly for export projects, research, and skill training. Any misuse of the fund would not be tolerated. An interim private sector-led steering committee will oversee allocation of the Rs52 billion EDF.
The meeting also addressed excessive taxation on exporters. Officials noted that export taxes remain higher than domestic business taxes. A separate working group has already suggested reforms for reducing the export tax burden. The premier emphasized that all efforts aim to provide maximum support to industrialists and promote Pakistani goods worldwide.
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The removal of the Export Development Surcharge marks a major step in enhancing Pakistan’s exports and international trade. PM Shehbaz stressed that strict fund utilization and continued reforms will ensure sustainable export growth.