Overview
- Prime Minister Shehbaz Sharif ordered the immediate abolition of the 0.25% Export Development Surcharge to lower exporter costs.
- An interim steering committee led by private-sector representatives will supervise utilisation of the Rs52 billion in the Export Development Fund, with roughly Rs8 billion expected this fiscal year.
- A third-party audit has been mandated for the EDF, including a review of the past five years and scrutiny of ongoing schemes.
- EDF spending is now limited to research, skills and competitiveness initiatives with no infrastructure allocations, after years of financing trade fairs including nearly Rs4 billion to TDAP last year.
- Officials noted exporters face heavier taxes than domestic businesses, other reform proposals remain under consideration, and a presidential order to withdraw the surcharge was discussed as an implementation option.