Prime Minister Shehbaz Sharif on Monday ordered the immediate abolition of the Export Development Surcharge (EDS) and directed a comprehensive third-party audit of the Export Development Fund (EDF) as part of measures aimed at overhauling the country’s exports.
Chairing a high-level meeting to review recommendations compiled by a sub-working group formed in October to assess ways to increase national exports, he praised the panel’s work and instructed relevant ministries and agencies to implement its recommendations immediately.
Under the proposed measures, the government would conduct a five-year, internationally benchmarked third-party audit of the EDF and all programs and schemes under it. The premier ordered the appointment of a qualified private-sector professional as chairperson of the EDF to ensure more transparent and effective use of its resources.
He said EDF allocations must be restricted strictly to initiatives that expand Pakistan’s exports, including research and development, skill building and training for the export workforce, and the provision of modern, globally competitive facilities. “The irrelevant or illogical use of the Export Development Fund is unacceptable,” he said, adding promoting Pakistani products abroad is the federal government’s responsibility. Exporters and industrialists must receive “every possible facilitation” on a priority basis, he emphasized.
Sharif also directed reforms and restructuring of the Trade Development Authority of Pakistan to strengthen its role in export promotion.
The meeting comes amid stagnant exports in Pakistan as imports are once again climbing, raising fears of another balance of payments crisis.