KARACHI: Following the directives of the federal government, the State Bank of Pakistan (SBP) on Tuesday announced to discontinue the collection of the Export Development Surcharge (EDS) with immediate effect.
Last week, in a significant move aimed at supporting Pakistan’s export sector, the federal government has abolished the EDS The decision, announced through a notification issued by the Ministry of Finance and Revenue (S.R.O. 2335(I)/ 2025 dated December 1, 2025), has prompted the State Bank to direct all banks to stop the collection of the surcharge.
The SBP, through a circular addressed to the presidents and chief executives of Authorized Dealers in foreign exchange, confirmed that all previously issued instructions regarding EDS collection now stand withdrawn. Earlier guidelines had been communicated through EPD Circular Letter No. 02 of January 22, 2003, and FD Circular Letter No. 03 of April 20, 2023.
Govt praised for abolishing EDS
As per S.R.O. 2335(I)/ 2025, issued by Ministry of Finance, in exercise of the powers conferred by sub-section (3) of section 11 of the Finance Act 1991, the Federal Government is pleased to exempt whole of the special customs duty levied and collected as Export Development Surcharge one exportation of all goods under sub-section (l) of section 11 of the Act, with immediate effect.
Accordingly, the Circular Letters stand withdrawn immediately by the SBP for the collection of EDS.
SBP has advised the banks to bring this instruction to the knowledge of all their constituents and ensure meticulous compliance.
Exporters has appreciated the federal government decision and said that withdrawal of EDS is likely to reduce the cost of exporting and offer some relief to exporters at a time when competitiveness in global markets remains a challenge.
Copyright Business Recorder, 2025
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