Export Development Fund (EDF), is an autonomous organization constituted under the Export Development Fund Act, 1999 which aims to strengthen and develop infrastructure for promotion of exports. The Act allows to fund any activity which is relevant for promotion for exports and hence the scope of EDF financing includes but is not limited to establishment of training institutes & association’s offices, display centers, subsidizing of delegations & sales missions, participation in exhibitions abroad, research, market & product development, engagement of consultants etc.
The Fund is currently operating on proposal-based financing in which an organization (usually an association or chamber or institute or government entity) submits a project proposal which includes activities leading to strengthening and promotion of exports. There is no financial cap on the proposals. The Executive Committee of the Board is authorized to approve funding up to Rs. 10 million per proposal while approval above this limit are presented to the Board/Finance Committee.
A step by step guide to proposal financing workflow is presented below.
As a first step, the proposer is required to submit a detailed project proposal on EDF prescribed form (EDF Form-I)
complete in all respect to EDF Secretariat. The proposal should be submitted both in hard as well as soft form. Please remember that the financing through EDF is subject to project’s alignment to EDF objectives
After initial analysis, the EDF Secretariat will provide response to proposer in a week’s time. This may include acknowledgement of receipt, relevant queries about the project proposal or additional information required.
Once, all required information is provided, the EDF team will analyze in detail all aspects of project proposed, its objective and impact on overall exports of the country. To further agreed on the project’s line of action, level of financing and terms of agreement, a meeting with the project authorities may be convened to discuss all parameters in details.
Once all aspects of the project are settled between the proposer and the EDF Secretariat, the case will become part of the upcoming Finance/Executive Committee of the EDF Board with approval of competent authority.
The Secretariat will follow first-come first-serve basis for inclusion of a proposal as an agenda item in the relevant forum.
The proposed project will be presented before the Finance/Executive Committee of the Board of Administrators of EDF. The proposer will be invited to defend its case during the meeting. The Board and its Committee are fully empowered to approve the whole proposed amount or partial funding, impose specific conditions or reject the proposal.
Once the project is approved for financing through EDF by the competent forum, either of Finance or Executive Committee of EDF Board, the Finance section of EDF Secretariat will issue a “Release Order” to TDAP, Head office Karachi for further disbursement, provided that sufficient funds are available with EDF.
After receiving a Release Order, TDAP will ensure all pre-requisites have been completed by the project beneficiary, that may include but not limited to opening of joint account with TDAP, signing of grant agreement, conforming to conditions laid down in the decision of the Finance/Executive Committee etc. Once done, TDAP then issues a cheque in favor of the beneficiary for the project.
Please note that “In terms of Section 3(2) (2A&ii) of the Export Development Fund Act, 1999 the Federal Government contributes in the Fund. Hence, it is in the ambit of “Public Fund” as defined in Section 2(k) of PPRA Ordinance, 2002. The procurements financed wholly or partly out of Public Fund fall in the definition of “Public Procurement” (Section 2(1) of the Ordinance ibid). Resultantly, Public Procurement Rules, 2004 are applicable on the procurements out of Export Development Fund (EDF)