The Federal Cabinet in its meeting held on 30-05-1991 decided that an Export Development Surcharge (EDS) equivalent to 0.25% of the export value of all exports may be levied with effect from 1st July, 1991 and that the proceeds of the Surcharge should be transferred by the Government to the Export Development Fund (EDF) for distribution amongst the various export associations for export development.
The Fund was formally established through a Resolution on 01-09-1992. Later on, through a Bill passed by the Parliament, an Act came into existence called the “Export Development Fund Act, 1999”, which was published in the Gazette of Pakistan on 31-07-1999.
Amendment in EDF Act, 1999:
In the Trade Policy 2002-03, the Cabinet approved a proposal to amend Export Development Fund Act, 1999 to make it mandatory for all EDS receipts to be automatically transferred to EDF. Accordingly, the EDF Act, 1999 was amended by the Parliament through EDF (Amendment) Act, 2005, enabling transfer of the whole receipts of EDS collected in the preceding year to EDF in the following year.
Export Development Fund is an autonomous body and a peripheral wing of the Export & Import Department of the Ministry of Commerce, Government of Pakistan. It works under the administration of a Board of Administrators.
The aim of EDF is to address bottlenecks faced by the exporters and producers of export goods & services in Pakistan with a view to increase the performance of export sector. EDF extends financial support for initiatives / activities which helps development and promotion of export trade in Pakistan.
SOURCES OF FUNDING OF EDF
The sources of funding of EDF are as under:-
- Donations and endowments.
- Whole receipts of the Export Development Surcharge collected by the Federal Government.
- Grants made by the Federal Government.
- Any income accruing to the Fund from its investments and property.