Industry bodies seek equal treatment, question use of exporter-funded pool.

By Monitoring Desk

Export-oriented industries have raised objections to the government’s decision to allocate over Rs15 billion from the Export Development Fund (EDF) to the Rice Exporters Association of Pakistan, arguing that export losses are being faced across sectors and not by rice exporters alone, BR reported, citing sources.

The allocation was approved in a meeting of the EDF Board chaired by the commerce minister, which sources described as having been convened at short notice. Following the decision, several export associations are preparing to write to Prime Minister Shehbaz Sharif, seeking transparency and sector-wide consultation on EDF disbursements.

The allocation aligns with the government’s strategy to prioritise rice exports to China, the Philippines, Bangladesh and Indonesia. The commerce minister has already held meetings with ambassadors of these countries to discuss market access and rice export quotas.

Rice exporters have argued that high tariffs in these markets undermine competitiveness and have sought relief through local tax measures. 

Other exporters, however, contend that such relief falls outside the mandate of the EDF and should be addressed through federal policy measures and budgetary export packages, as done in the past.

Exporters from other sectors said the challenges cited by rice exporters are also being faced by value-added textiles and apparel, which account for around 55% of national exports, as well as by fruit, vegetable and other agro-based exporters. They argued that these sectors are also major contributors to the EDF.

Industry representatives have urged the government to ensure that EDF funds, which are financed through exporter contributions, are not utilised without the consent of contributing sectoral associations. They recalled that during a meeting on November 26, 2025, the prime minister had directed the abolition of the Export Development Surcharge (EDS) and assured that alternative funding arrangements for the EDF would be considered.

Separately, the government has decided to withdraw the 0.25% Export Development Surcharge with immediate effect. The surcharge had been levied on export proceeds at the time of realisation and credited to the EDF.

Published Date: January 23, 2026