Scrapping the development surcharge: businesses say decision to boost exports

PESHAWAR: Members of the business community welcomed the government’s decision to abolish 0.25 percent export development surcharge (EDS), stating that it would boost exports and to ease exporters’ cost pressure and enhance competitiveness in the global market.

Businessmen said the government’s decision is highly welcomed to stop collection of export development surcharge after 35 years, stating that a major step toward streamline the export procedures, promote industrial growth, and encourage value-added trade.

The government’s move will provide essential relief to exporters and support competitiveness in global markets, they hoped.

Traders remarked that the instance withdrawal of the EDS and implementation of the decision showed the will and commitment of the government of Pakistan to reduce [the] cost of doing business while providing an enabling environment for investors and exporters.

Businessmen and exporters of the Khyber Pakhtunkhwa saw the decision as an extremely commendable achievement of the incumbent government and expressed hope the business-friendly decisions will be implemented across the board to enhance trade, economic and commercial activities.

Touching upon a disproportionately high tax burden on export-oriented businesses, traders stated that exporters face significantly higher taxes compared to the domestic industry.

They urged the government to provide maximum facilitates to exporters and steps to effectively promote and showcase the Pakistani manufacturing products across the global markets.

President SCCI Junaid Altaf stressed pragmatic steps for simplifying the present tax-system, implementation of the government’s decision to bring down electricity tariff to eight cents, reforms in the power sector, and formation of National Industrial Policy (NIP) in consultation with chamber and relevant stakeholders. SCCI chief highlighted the borders, administration and operational related issues, stating that the frequent closure of borders had not only brought negative impacts on the country’s exports but also hinder the government’s efforts to stabilize the national economy.

He urged the government and stakeholders to open the border for trade to prevent the both side traders from further monetary losses.

Copyright Business Recorder, 2025