Govt exempts all exports from Export Development Surcharge

December 03, 2025 (MLN): To reduce the cost of doing business and boost exports, the Federal Government of Pakistan has exempted all exported goods from the Export Development Surcharge (EDS) with immediate effect.

The decision was formalized through the Ministry of Finance & Revenue Notification and communicated via the State Bank of Pakistan’s (SBP) Circular Letter issued yesterday.

The circular also withdraws earlier SBP circulars related to EDS collection that ensured that Authorized Dealers (banks) comply immediately.

SBP has instructed banks to inform all their clients of the exemption and ensure meticulous compliance to ensure a swift operational rollout that will benefit exporters nationwide.

The move follows a directive by the Prime Minister, announced shortly after forming focused working groups with private sector participation.

Alongside revoking the surcharge, the government has decided to transfer the management of the Export Development Fund to exporters themselves. 

Khurram Schehzad, Advisor to the Finance Minister, noted that “the speed of decision and implementation demonstrates the government’s commitment to creating an enabling environment for investors and exporters.”

The exemption is expected to have a positive impact on Pakistan’s export-oriented industries.

By lowering export costs and improving cash flow, exporters, especially in textiles, leather, and agriculture, can enhance their competitiveness in international markets, expand production, and invest in growth.

The shift also encourages private-sector-led management of export development funds, promoting more targeted and efficient support for the industry.

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