- SBP says all earlier circulars related to surcharge are now withdrawn.
- Says that all exported goods are exempt from surcharge with immediate effect.
- The advisor says the move follows the formation of new task forces led by the private sector.
The federal government has canceled the development surcharge on all exports, the State Bank said on Tuesday, giving exporters some breathing room as they try to cut 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 circular letters were being abolished with immediate effect.
“Decision taken by the Prime Minister within days to form targeted working groups with the private sector in the lead, to revoke the export development surcharge, among other key restructuring decisions,” Khurram Schehzad, advisor to Pakistan’s finance minister, said in an article on X.
“The speed of the decision and implementation showed the willingness and commitment of the Government of Pakistan to reduce [the] cost of doing business while providing a favorable environment for investors and exporters,” added Schehzad.
The decision was taken at a meeting chaired by Prime Minister Shehbaz Sharif and attended by economic experts.
Earlier, the Prime Minister had set up a dedicated task force on EDS, headed by Musadaq Zulqarnain, to review the Export Development Fund (EDF) and recommend reforms.
The group brought together representatives from the private sector as well as Commerce Secretary Bilal Azhar Kiyani, EDF Executive Director Mosharraf Zaidi, Shahzad Saleem, Misbah Naqvi, Khurram Mukhtar, Arif Saeed, Ahmad Umair and Sualeh Faruqi.
