The federal government has rolled out a broad package of economic and administrative reforms aimed at stabilising the national economy, strengthening export competitiveness, and improving the governance of key state institutions. The measures, endorsed during a series of high-level meetings in Islamabad, span energy pricing, export facilitation, development planning, and oversight of major state-owned enterprises. Officials describe the initiative as a renewed commitment to economic revival, institutional strengthening, and targeted public welfare.
A major policy shift was announced with the immediate withdrawal of the 0.25 percent Export Development Surcharge. The decision was taken during a meeting at the Prime Minister’s House, attended by senior federal ministers and prominent private-sector members. The surcharge, long criticized by exporters as an unnecessary financial burden, will no longer apply to export transactions. The recommendation for its removal emerged from a dedicated Working Group on the Export Development Surcharge led by Musadaq Zulqarnain, supported by private-sector representatives Shahzad Saleem, Misbah Naqvi, Khurram Mukhtar, Khurram Mukhtar, Arif Saeed, Ahmad Umair, and Sualeh Faruqi, along with Secretary Commerce Bilal Azhar Kiyani and Export Development Fund officials.
Speaking to The News, Khurram Mukhtar said the committee had reached its conclusions after an extensive review of current EDF-funded initiatives, many of which showed limited contribution to export productivity. He noted that removing the surcharge marks an important shift toward competitiveness, adding that the prime minister’s endorsement reinforces the government’s focus on strengthening the export ecosystem.
The prime minister also directed the formation of an interim steering committee led by private-sector stakeholders to supervise how the Rs52 billion in the Export Development Fund will be allocated. The committee will ensure that EDF resources are channelled strictly into research and development, skill enhancement, and productivity-focused interventions rather than infrastructure projects. Mukhtar said the new oversight structure should improve transparency and ensure that spending reflects industry priorities.
The meeting further addressed exporters’ longstanding concerns about the comparatively higher tax load faced by export-oriented businesses. A separate Working Group, headed by Shahzad Saleem, has submitted recommendations on taxation disparities, and the prime minister is expected to convene a follow-up session.
Parallel to the export-related reforms, the Executive Committee of the National Economic Council, chaired by Deputy Prime Minister Ishaq Dar, approved development projects totalling more than Rs507 billion. These include the continuation of the Emergency Polio Eradication Programme for 2026-2029, which aims to interrupt poliovirus transmission entirely and secure global certification by 2029. The financial package of $639.54 million will support essential operations such as vaccine procurement, surveillance systems, campaign logistics, and community outreach.
ECNEC also endorsed numerous infrastructure, education, health, and municipal-service initiatives across the country. These include the reconstruction of 481 schools in Sindh on a cost-sharing model, the restructured KP Human Capital Investment Project supported by the World Bank, and the expanded Karachi Water & Sewerage Services Improvement Project Phase II with additional European financing. Additional approvals covered the Raising of Mangla Dam Project, revisions to major road networks including routes in Balochistan, and a new 110-kilometre road from the Iran border to Panjgur.
In another important governance development, the Cabinet Committee on State Owned Enterprises approved several appointments of independent directors across major public institutions. These include the nomination of board members for Zarai Taraqiati Bank Limited, the Port Qasim Authority, Sindh Engineering (Pvt) Limited, the Small and Medium Enterprises Development Authority, Sui Northern Gas Pipelines Limited, and the State Engineering Corporation. Finance Minister Senator Muhammad Aurangzeb, who chaired the meeting, emphasised the importance of selecting individuals with strong professional backgrounds to uphold standards of oversight and operational discipline.
The committee also instructed the Finance Division and Privatisation Division to conduct a detailed assessment of litigation affecting SOEs earmarked for privatisation, with the aim of resolving obstacles and preparing these entities for smoother transactions.
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