- The government decides to withdraw 0.25% EDS with immediate effect.
- The policy changes are expected to provide immediate relief to exporters.
- ECNEC approves development projects worth Rs 507 billion.
ISLAMABAD: The federal government has introduced several important policy measures aimed at boosting the economy, supporting exporters and providing relief to citizens. The news reported on Tuesday.
The initiatives cover energy prices, export reforms, development spending and oversight of state-owned companies.
From withdrawing the long-standing Export Development Surcharge (EDS) to reducing prescribed gas prices, approving over Rs 507 billion worth of development projects and strengthening supervision of key state-owned enterprises, the government is signaling renewed focus on economic revival, institutional reform and public welfare.
In a major policy development aimed at boosting Pakistan’s export competitiveness, the government has decided to withdraw the 0.25% Export Development Surcharge (EDS) with immediate effect. The decision was made during a meeting held at Prime Minister House on Monday, attended by senior federal ministers and members of the private sector.
Earlier, the Prime Minister had formed a dedicated Task Force on ESD, chaired by Musadaq Zulqarnain, to re-evaluate the Export Development Fund (EDF) and suggest reforms to strengthen Pakistan’s export ecosystem. The group included private sector leaders Shahzad Saleem, Misbah Naqvi, Khurram Mukhtar, Arif Saeed, Ahmad Umair and Sualeh Faruqi, along with Commerce Secretary Bilal Azhar Kiyani and EDF officials.
Speaking exclusively with The news Khurram Mukhtar said the recommendations were finalized after “a detailed assessment of existing EDF-funded initiatives and their limited impact on export productivity.”
He added: “The withdrawal of EDS is a critical step. Exporters have long argued that this surcharge had become a burden rather than an enabler. The Prime Minister’s decision sends a strong signal that competitiveness is now the top priority.”
During the meeting, the Prime Minister also ordered the formation of an interim steering committee to be led by representatives of the private sector, which will oversee the utilization of the Rs 52 billion currently available in the EDF. The committee is mandated to ensure that funds are spent strictly on R&D, skills development and interventions to improve competitiveness rather than infrastructure-related projects.
Khurram Mukhtar noted that the new oversight mechanism would “ensure transparency, efficiency and private sector governance in the way EDF resources are used.”
The meeting also addressed another long-standing concern of the export community: the disproportionately high tax burden on export-oriented industries compared to domestic companies. An independent task force, led by Shahzad Saleem, has already submitted its recommendations on the tax issue, and the prime minister is expected to convene a dedicated meeting soon.
According to Mukhtar, “taxes on export-oriented sectors have become distorting and uncompetitive. The government’s willingness to seriously examine this issue is a positive sign for the industry.”
The policy changes announced on Monday are expected to provide immediate relief to exporters while laying the foundation for a more competitive and innovation-driven export sector.
Meanwhile, the Executive Committee of the National Economic Council (ECNEC), under the chairmanship of Deputy Prime Minister Ishaq Dar, approved development projects worth Rs 507 billion, including the continuation of the Emergency Polio Eradication Program (2026-2029).
The fourth revised PC-I for the Polio Eradication Emergency Plan (2026-2029) represents Pakistan’s commitment to achieve complete interruption of poliovirus transmission and secure global certification by 2029.
The expansion and revised financial envelope of $639.54 million are designed to sustain essential eradication activities (vaccine procurement, campaign operations, surveillance and community engagement) during the final phase of the program.
While the project demonstrates strong strategic alignment with the Global Polio Eradication Initiative (GPEI) and the National Emergency Action Plan (NEAP), several critical considerations arise. The program remains entirely dependent on external financing, mainly through grants and loans from development partners and the Islamic Development Bank.
This dependency underscores the need for a clear transition and sustainability strategy that allows for the gradual integration of polio assets (manpower, surveillance systems and logistics) into the Expanded Program on Immunization (EPI) and the broader Primary Health Care framework. Operationally, Pakistan’s well-established network of Emergency Operation Centers (EOCs) and its multi-level governance mechanism provide an effective platform for coordination and accountability.
However, performance audits, risk mitigation measures and a more robust provincial breakdown of financial and physical targets are required to ensure transparency and efficiency. Sustained political ownership at the federal and provincial levels, continued community engagement to address refusals, and safety protections for frontline workers remain essential preconditions for success.
According to an official communication, ECNEC approved development projects worth over Rs 507 billion, covering key sectors such as education, health, water supply and major national infrastructure. ECNEC reviewed a presentation on the PIMA Action Plan: Specific Guidance for Appraisal under the IMF Program and, in approving the appraisal guidelines, directed that an update on the review of the economic/social discount rate by the PIDE be submitted within two months.
In the education sector, the Committee approved the revised project for reconstruction of flood-affected schools in Sindh, which will now cover 481 schools with a 50:50 cost sharing between the federal government and the Sindh government.
In the health sector, ECNEC approved the restructured KP Human Capital Investment Project (Health Component), funded through a loan from the World Bank.
For water supply and municipal services, the revised Phase II of the Karachi Water and Sewerage Services Improvement Project (KWSSIP) was approved, incorporating new funding from the European Investment Bank and an expanded scope with additional filter plants.
Major infrastructure approvals included the Mangla Dam raising project and key road projects such as the revised Ziarat Mor-Kech-Harnai and Harnai-Sanjavi roads, as well as a new 110-kilometre road from the Iran border to Panjgur to open a new international border point. ECNEC also approved the revised compensation and land acquisition plan for Karachi-Lahore Expressway.
In Balochistan, the Committee approved the revised Sectoral Water Resources Development Project valued at Rs 49.9 billion. In Sindh, the Rs 42 billion Flood Response Emergency Housing Project (Phase III) was approved to support reconstruction in flood-affected communities.
In a related development, the Cabinet Committee on State-Owned Enterprises (CCoSOE) approved the appointment of independent directors to the board of directors of Zarai Taraqiati Bank Limited (ZTBL), Port Qasim Authority, and the nomination to fill the casual vacancy on the board of directors of Sui Northern Gas Pipelines Limited (SNGPL).
The CCoSOEs also approved the Board members of Sindh Engineering (Pvt) Limited (SEL), Small and Medium Enterprises Development Authority (SMEDA) and the constitution of the Board of Directors of State Engineering Corporation (SEC).
The CCoSOEs met in Islamabad on Monday under the chairmanship of Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb.
The Committee considered the summaries presented by the Finance Division, the Maritime Affairs Division, the Petroleum Division and the Industries and Production Division, and approved the agenda items presented. These included the appointment of an independent director to the board of directors of Zarai Taraqiati Bank Limited (ZTBL), proposed by the Finance Division; appointment of independent directors to the Board of Qasim Port Authority, Karachi, as proposed by the Maritime Affairs Division; and the nomination to fill the casual vacancy on the board of directors of Sui Northern Gas Pipelines Limited (SNGPL), filed by the Petroleum Division.
The Committee also approved three summaries of the Industries and Production Division, namely, constitution of the Board of Directors of Sindh Engineering (Pvt) Limited (SEL), appointment of a member from the private sector from Punjab to the Board of Small and Medium Enterprises Development Authority (SMEDA) and constitution of the Board of Directors of State Engineering Corporation (SEC).
Concluding the meeting, the President appreciated the diligence exercised in selecting suitable candidates from the private sector to serve as independent directors, underscoring the importance of continuing this rigorous approach to ensure that individuals with the necessary experience, knowledge, expertise and professional acumen are appointed to the boards of these and other state-owned enterprises.
The Committee also requested the Finance Division and the Privatization Division to carry out a thorough review, assessment and stocktaking of pending disputes between state-owned enterprises slated for privatization and, in coordination with relevant ministries and the Legal Division, to work on identifying mechanisms to smooth out these issues to ensure their readiness for a smooth privatization process.
