Immediate Relief for Exporters
The Pakistani government has abolished the Export Development Surcharge (EDS) on all exported goods with immediate effect, a move aimed at reducing costs for exporters and strengthening their position in global markets. The State Bank of Pakistan (SBP) issued a formal notification confirming the exemption, stating that all its previous circulars related to the 0.25% surcharge now stand withdrawn.
A Swift Decision Following Private-Sector Consultation
The decision was taken during a meeting chaired by Prime Minister Shehbaz Sharif and follows the recent formation of new private-sector-led working groups focused on export sector reforms. Khurram Schehzad, Advisor to the Finance Minister, highlighted the government’s commitment to rapid action, stating the move demonstrates a clear will to “reduce the cost of doing business” and create an enabling environment for investors and exporters.
Background and Working Group
Earlier, the Prime Minister had established a dedicated Working Group on the EDS, led by Musadaq Zulqarnain, to review the Export Development Fund (EDF) and recommend structural reforms. The group included key private-sector representatives alongside government officials such as Secretary Commerce Bilal Azhar Kiyani and EDF Executive Director Mosharraf Zaidi.
The abolition of the surcharge is viewed as a direct response to the group’s recommendations and is expected to provide crucial breathing room for Pakistan’s export sector, which has been grappling with high operational costs and intense international competition.
