By Moaaz Manzoor

The government has decided to overhaul the Export Development Fund (EDF), reconstitute its Board and shift it to a corporate governance framework under Section 42 of the Companies Act 2017, according to documents available with Wealth Pakistan.

The move follows an in-house strategy aimed at transforming EDF from a “reactive” to a “proactive” mode. A Vision, Mission and Strategy exercise was conducted on the direction of the Minister for Commerce with technical assistance from the Remit Project (FCDO).

The study recommended strengthening research capabilities, launching seven thematic financing windows, and integrating the Pakistan Single Window (PSW) platform to directly connect with exporters. It also proposed six additional financing windows focused on green technologies, export credit and insurance, a Challenge Fund and industrial estate infrastructure, along with restructuring the governance model through a lean, professional organogram.

The reform gathered pace after a consultant presented the recommendations to the EDF Board on May 21, 2025. The Board endorsed the proposals and constituted a sub-committee, which met on June 13, 2025 and unanimously recommended that EDF operate as a company constituted under Section 42 of the Companies Act 2017 with representation from both the government and the private sector.

On the directions of the Prime Minister, a working group on the Export Development Fund was formed on October 23, 2025 to chart the future roadmap. The group submitted its recommendations in a meeting held on November 24, 2025.

Under the restructuring plan, the Export Development Board will be reconstituted through amendments in the EDF Act, 1999 until a private-led Section 42 company is incorporated to manage the fund.

The Board will be chaired by an eminent and well-reputed exporter or entrepreneur and will review the viability and feasibility of the existing portfolio of projects. The document states that the Export Development Surcharge may be abolished immediately.

Subsequently, with the approval of the federal government, the Federal Board of Revenue issued an SRO dated December 1, 2025 granting exemption from the levy and collection of Export Development Surcharge on export of all goods. The State Bank of Pakistan withdrew its relevant circular on December 2, 2025 with immediate effect.

The EDF Act, 1999 (Amendment) Bill, 2025 was vetted by the Law and Justice Division, sent to the Cabinet Committee on Disposal of Legislative Cases, and has been assented to by the President following amendments made by the CCLC and the National Assembly Standing Committee.

The reconstituted Board will include five top exporters with at least one from the non-textile sector, three representatives from agro, IT and industries with at least one SME, the President of FPCCI and Chairman of PBC, Secretary or Additional Secretary representing the ministries of Finance, Commerce, Industries and Production, National Food Security and Research, along with the Chief Executive of TDAP and Executive Director EDF.

The Chairman will be appointed by the federal government from the private sector, while the Secretary will be appointed by the Board from among its members. The future strategy calls for a review of the current portfolio, adoption of corporate governance to remove conflicts of interest and improve evidence-based decision-making, and the development of a sustainability plan in light of the halted revenue stream.

It also proposes launching financing windows that support productivity and sustainable growth, fostering integration with global value chains, diversifying export markets and product lines, strengthening trade organisations, and establishing direct linkages with exporters to enable effective monitoring and impact analysis.

Credit: INP-WealthPk