The Economic Coordination Committee (ECC), the federal cabinet body that clears major economic decisions, has approved a proposal allowing the Export Development Fund (EDF) Board to shift money from its Public/Treasury Account into a commercial bank account so the Fund can invest in government securities. The step follows the suspension of the Export Development Surcharge (EDS), a levy that had been a major source of EDF revenue.
According to an official document, the Ministry of Commerce put the plan before the ECC in a summary dated 6 October 2026. Officials sought permission to invest EDF resources in government securities to earn income and keep the Fund viable after the surcharge freeze.
Why the Fund needs a new income path
The Commerce Ministry told the ECC that EDS collection stopped with effect from 1 December 2025. The freeze followed directions of the Prime Minister, based on recommendations of a working group set up by the Prime Minister’s Office, and was carried out through Finance and Revenue Notification No. SRO/2335(I)/2025.
The government suspended the surcharge to ease the cost of doing business for exporters. At the same time, work began to amend the Export Development Fund Act and reconstitute the Fund’s Board. That legislative process ended with the President’s assent on 26 January 2026. The federal government then appointed new EDF Board members through a notification issued on 17 February 2026.
With its main revenue stream paused, the ministry argued the Fund needed other ways to earn money so its resources would hold up over the coming years.
How the ECC clearance was secured
The idea was taken up in the EDF Board’s 93rd and 96th meetings. Members decided to ask the Finance Division for help and approval to invest EDF money in fixed-income government securities, or to place it in an interest-bearing account with the National Bank of Pakistan (NBP) for investment.
Commerce then approached Finance, noting that the EDF sits in the Public Account, is non-lapsable (unused balances do not expire at year-end), and can earn returns from investments. Finance supported putting EDF funds into government securities. It also said moving money from a government account into a commercial bank for investment would need Federal Government approval under Section 23(2) of the Public Finance Management Act, 2019—the law that governs how public money is handled.
On that basis, Commerce asked the ECC to let the EDF Board transfer funds from its Public/Treasury Account to a commercial bank account for onward investment in government securities. The ECC considered and approved the proposal.
Timeline: what has happened so far
- 1 December 2025: Collection of the Export Development Surcharge is suspended under SRO/2335(I)/2025.
- 26 January 2026: The President gives assent to amendments to the Export Development Fund Act.
- 17 February 2026: The federal government notifies new members of the EDF Board.
- EDF Board 93rd and 96th meetings: The Board decides to seek Finance Division facilitation for investment in government securities or an NBP interest-bearing account.
- 6 October 2026: The Commerce Ministry submits its ECC summary seeking approval for the bank transfer and securities investment.
- ECC decision: The committee approves the transfer and investment route so the Fund can earn income while EDS remains suspended.
Officials frame the move as a way to keep the Export Development Fund financially sustainable while the EDS freeze continues to lower exporters’ cost burden.
Aasan alfaaz mein
Sarkar ne Export Development Fund ko ijazat de di hai ke woh apna paisa commercial bank mein shift karke government securities mein invest kare. Pehle Fund ka bohot sa revenue Export Development Surcharge se aata tha, jo December 2025 se band hai. Yeh surcharge exporters ka kharcha kam karne ke liye roka gaya tha. Ab Fund ko income ke dusre zariye chahiye taake woh export support ka kaam chalata rahe.
