Govt to abolish Export Development Surcharge

In a move to boost national exports, Prime Minister Shehbaz Sharif on Monday directed authorities to abolish the Export Development Surcharge imposed on exporters.

The development came during a review meeting held under the chairmanship of PM Shehbaz on the recommendations of the sub–working group established to enhance the country’s exports, read a statement released by the Prime Minister’s Office (PMO).

The sub-working group established in October to increase national exports presented its recommendations during the meeting after conducting sector-specific research. Chairperson of the sub-working group, Musaddiq Zulqernain, presented the recommendations in the presence of all members.

The prime minister appreciated the work of the sub-working group and, after reviewing the recommendations, issued effective orders for all relevant institutions to take immediate action, read the statement.

Pakistan’s exports have remained largely stagnant, with the total exports standing at $13.7 billion during the first four months of the current fiscal year, compared to $13 billion in the same period of FY25.

Last month, the World Bank warned that Pakistan’s exports as a share of GDP are declining and are substantially below potential, revealing an untapped export potential of nearly $60 billion.

During the review meeting, the premier directed that a third-party audit of the Export Development Fund (EDF) for the past five years be conducted in accordance with international standards.

He also instructed that an appropriate chairman from the private sector be selected to ensure the optimal use of the current funds available in the EDF.

During the meeting, PM Shehbaz emphasised that the funds in the EDF must be used exclusively for increasing national exports, supporting relevant research and development, improving skills and training of the export sector’s workforce, and providing modern, world-class facilities.

The prime minister directed that the role of the Trade Development Authority of Pakistan (TDAP) be reviewed and restructured to effectively support export growth.

He said that the promotion and marketing of Pakistan’s export products worldwide is the responsibility of the federal government.

The meeting was attended by Minister for Planning and Development Ahsan Iqbal, Minister for Finance Muhammad Aurangzeb, Minister for Commerce Jam Kamal, Minister for Climate Change Dr Musaddiq Malik, Minister for Petroleum Ali Pervez Malik, Minister of State for Finance Azhar Bilal Kayani, the Chairman Sof IFC, and other senior government officials.