Govt appoints private sector–led Export Development Fund board, removes commerce minister

The federal government has notified a reconstituted board of administrators for the Export Development Fund, shifting control to the private sector and reducing the role of the commerce ministry in managing the fund. The commerce minister and the secretary of commerce have been removed from their earlier positions as chairman and vice chairman, following amendments to the Export Development Fund Act.

Under an official notification, the 22-member board will be chaired by Omer Saeed, Chief Executive Officer (CEO) of Service Long March Tyres Limited. 

The changes were introduced last month after recommendations by a panel formed by the prime minister to review the EDF’s governance. The amendments abolished the post of vice chairman and ended the commerce ministry’s role as the board’s secretariat. The board’s executive committee has also been disbanded.

Under the amended law, the board must include the top four exporters based on three-year performance data, one leading non-textile and apparel exporter, and representatives from the agriculture, information technology and industry sectors.

The reconstituted board includes six government officials: the secretaries of finance, commerce, national food security and industries, the chief executive of the Trade Development Authority of Pakistan, and the executive director of the EDF. The remaining members are from the private sector, including representatives of Style Textile, Interloop, Artistic Milliners, Nishat Mills, Novatex, Verdora Ventures and Systems Limited.

The government has also included the chairperson of the Pakistan Business Council, the president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), and representatives of surgical goods, rice exporters, sports goods, meat exporters and pharmaceutical manufacturers.

The overhaul follows recommendations from private sector panels aimed at reducing regulatory bottlenecks and improving business facilitation. 

The board will review the feasibility of ongoing projects, assess completed initiatives, and oversee reforms to improve governance and institutional arrangements. The amendments also allow for the possibility of converting the EDF into a non-profit company to enhance support for export sector development.

Earlier, the government abolished a 0.25% surcharge on exporters, which had accumulated approximately Rs 52 billion in the EDF. The prime minister also ordered a third-party audit of the fund in line with international standards.

Last month, the EDF board approved Rs 15 billion to support rice exporters through rebates ranging from 3% to 9% until June. The allocation drew opposition from some quarters.