Prime Minister Shehbaz Sharif has initiated a significant overhaul of Pakistan’s export facilitation system by abolishing the Export Development Surcharge and ordering an internationally benchmarked five-year audit of the Export Development Fund. These decisions were reached during a high-level review meeting held on Monday, where the government assessed recommendations prepared by a specialized sub-working group tasked with examining structural challenges in the country’s export ecosystem. The sub-group, formed in October and led by Musaddiq Zulqarnain, presented its findings in the presence of senior ministers and institutional heads.
During the meeting, Sharif commended the group’s efforts and directed government departments to implement the proposed reforms immediately. He emphasized that Pakistan’s export performance requires urgent improvements and that any misuse or poorly justified allocation of EDF resources must end. The prime minister stressed that only initiatives directly linked to boosting the country’s exports should receive funding. This includes research and development projects, skills enhancement for export-oriented labor, and the establishment of modern, competitive facilities capable of supporting globally aligned production standards.
A major element of the reform plan is the comprehensive five-year audit of the Export Development Fund and all schemes operating under it. According to the Prime Minister’s Office, this audit will be carried out by an independent third-party entity to ensure transparency, consistency, and alignment with international best practices. Sharif also directed that the EDF be headed by a qualified private-sector professional to instill market-oriented discipline and improve operational efficiency within the institution.
In parallel to the EDF restructuring, the prime minister instructed the Trade Development Authority of Pakistan to undergo reforms and organizational adjustments aimed at strengthening its role in global trade promotion. The government seeks to ensure that TDAP evolves into a more strategic and proactive entity capable of supporting exporters and widening Pakistan’s footprint in international markets. Sharif said that advancing Pakistan’s products abroad is a core responsibility of the federal government and that exporters must receive timely and effective support.
The meeting was attended by key members of the federal cabinet, including Planning Minister Ahsan Iqbal, Finance Minister Muhammad Aurangzeb, Commerce Minister Jam Kamal, Climate Change Minister Musadik Malik, Petroleum Minister Ali Pervez Malik, and Minister of State for Finance Azhar Bilal Kayani. Senior representatives of the Special Investment Facilitation Council and other relevant agencies were also present. The extensive participation signaled the government’s intention to make export development a multi-ministerial priority.
Pakistan has faced persistent challenges in improving its export earnings, which continue to lag behind those of regional competitors. Despite repeated government efforts to enable industrial growth and enhance global competitiveness, the country’s export sectors have struggled to deliver sustained expansion. Over the years, the Export Development Fund has been criticized by industry groups for lack of transparency, inconsistent allocation of resources, and limited impact on export diversification. Businesses have frequently urged authorities to restructure EDF governance and ensure that funds are directed toward measurable export outcomes rather than unrelated administrative expenditures.
The government’s latest interventions come at a critical time as Pakistan seeks to stabilize its external account, expand foreign exchange inflows, and create a more favorable trade environment. By strengthening governance mechanisms, enhancing institutional accountability, and prioritizing exporter-centric reforms, the government aims to lay the foundation for long-term export growth and a more resilient economic framework. Stakeholders from across the industry will now watch how quickly the new directives are implemented and whether they translate into meaningful and sustainable improvements in Pakistan’s trade competitiveness.
Follow the PakBanker Whatsapp Channel for updated across Pakistan’s banking ecosystem.