ISLAMABAD – The federal government has decided to eliminate the Export Development Surcharge (EDS) on all export goods after 34 years, providing major relief to business community.
The Federal Board of Revenue (FBR) informed the State Bank of Pakistan (SBP) about the decision, requesting that all commercial banks cease collecting the surcharge.
Following the directive, the SBP promptly issued instructions to all banks and foreign exchange dealers, ensuring the immediate suspension of EDS collection on exports.
The decision comes after Prime Minister Shehbaz Sharif’s recent instruction to end the surcharge on exports.
In his statement, the prime minister emphasized the need to align Pakistan’s export development policies with international standards, urging a third-party audit of the Export Development Fund (EDF) for the past five years. The audit will help ensure that the fund is used efficiently and transparently.
Prime Minister Sharif also directed that the funds accumulated in the EDF should be used for enhancing the country’s export capacity. He recommended investing in workforce training and improving infrastructure to meet global standards, thereby fostering long-term growth in Pakistan’s export sector.
This move is expected to provide much-needed relief to Pakistani exporters, who have been grappling with rising costs, and is aimed at stimulating the country’s export growth.
The removal of the surcharge is also seen as part of broader efforts to make Pakistan’s export sector more competitive globally.
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