According to informed sources, export-oriented industries have reacted strongly to the government’s decision to allocate more than Rs15 billion from the Export Development Fund (EDF) to the Rice Exporters Association of Pakistan.
Knowledgeable exporters argue that the entire export sector is currently facing losses, not just the rice sector. Sources said the decision was taken during a hastily convened meeting of the Export Development Fund Board, chaired by the Minister for Commerce. Following the decision, several export associations are preparing to write to Prime Minister Shehbaz Sharif, demanding transparency and fair treatment in the distribution of EDF funds.
Sources added that the decision is part of the government’s strategy to focus on four countries, namely China, the Philippines, Bangladesh, and Indonesia. In this regard, the Minister for Commerce has already met ambassadors of these countries to discuss the strategy and explore the possibility of increasing rice export quotas.
Rice exporters say they face competitiveness issues in these markets due to high tariffs and are therefore seeking relief in local taxes. However, exporters point out that measures such as the Duty and Tax Remission for Exports (DTRE) or similar relief schemes do not fall under the mandate of the Export Development Fund. Such incentives are part of federal government policy under the Ministry of Commerce and have traditionally been announced through the budget to improve competitiveness and ensure a level playing field for exporters.
According to sources, exporters have urged the Prime Minister that the Export Development Fund, which consists of contributions made by exporters themselves, should not be used without the consent of the relevant sectoral associations. They recalled that during a meeting held on November 26, 2025, the Prime Minister had directed the abolition of the Export Development Surcharge and assured that alternative funding sources would be arranged for the EDF in the future.
Exporters maintain that, as a matter of principle, the federal government should treat all export sectors equally rather than giving preference to a single sector. If incentives are to be provided under any policy, they should come from government resources and be made available to all sectors without discrimination.
Furthermore, exporters have suggested that, in view of the current global market challenges affecting all export sectors equally, the government should consider a one-time refund of previously collected Export Development Surcharge amounts to exporters across all sectors. They noted that comprehensive exporter data is already available on the Pakistan Single Window platform.
In a related development, the government has decided to immediately withdraw the 0.25 percent Export Development Surcharge, providing long-awaited relief to exporters and raising expectations of improved competitiveness for Pakistan in global markets. The surcharge was previously levied on export value, deducted at the time of export proceeds realization, and deposited into the Export Development Fund. The Export Development Fund is a government-supported fund used for initiatives such as training institutions, trade missions, research, marketing, and the development of export-related infrastructure.
