- The SBP claims that all previous circulars related to the surcharge are now withdrawn.
- It says all export goods are exempt from the surcharge with immediate effect.
- The advisor says the move comes after the formation of new working groups led by the private sector.
The federal government has waived the development surcharge on all exports, the State Bank said on Tuesday, offering exporters some breathing room as they try to reduce costs and remain competitive in global markets.
The Export Development Surcharge (EDS) had been set at 0.25%.
“The federal government has exempted all exported goods from the export development surcharge levied under sub-section (1) of section 11 of the Finance Act, 1991, with immediate effect,” according to an SBP notification.
The central bank said its previous circulars were abolished with immediate effect.
“The decision taken by the prime minister in a few days to form specific working groups with the private sector at the helm, to repeal the Export Development Surcharge, among other key restructuring decisions,” Khurram Schehzad, advisor to Pakistan’s Finance Minister, said in a post on X.
“The speed of the decision and implementation has demonstrated the will and commitment of the Government of Pakistan to reduce [the] cost of doing business while providing an enabling environment for investors and exporters,” Schehzad added.
The decision was taken during a meeting chaired by Prime Minister Shehbaz Sharif and attended by economic experts.
Earlier, the prime minister had set up a specific task force on ESD, led by Musadaq Zulqarnain, to review the Export Development Fund (EDF) and recommend reforms.
The group brought together representatives from the private sector along with Commerce Secretary Bilal Azhar Kiyani, EDF CEO Mosharraf Zaidi, Shahzad Saleem, Misbah Naqvi, Khurram Mukhtar, Arif Saeed, Ahmad Umair and Sualeh Faruqi.
