Karachi, December 2, 2025 – The State Bank of Pakistan (SBP) has officially halted the collection of the Export Development Surcharge (EDS), providing significant relief to the export sector.
The directive, issued through a circular on Tuesday to all presidents and CEOs of commercial banks as well as authorized dealers in foreign exchange, mandates the immediate discontinuation of EDS collection on all export-related transactions.
The SBP noted that earlier guidelines—EPD Circular Letter No. 02 dated January 22, 2003, and FD Circular Letter No. 03 dated April 20, 2023—had outlined the mechanism for collecting the surcharge. However, the latest development follows the Federal Government’s decision to fully exempt all exported goods from the surcharge.
According to the central bank, the exemption is based on the Ministry of Finance & Revenue’s Notification No. S.R.O. 2335(I)/2025, issued on December 1, 2025. The notification abolishes the levy imposed under Section 11(1) of the Finance Act, 1991, thereby rendering previous SBP instructions obsolete. In response, the SBP has withdrawn all earlier circulars concerning the surcharge collection with immediate effect.
The SBP further instructed authorized dealers to promptly inform all exporters, clients, and relevant stakeholders about the new directive. Banks have also been advised to ensure strict and timely compliance to avoid any procedural delays or misapplication of the withdrawn surcharge.
Industry experts believe the exemption will help improve exporters’ liquidity, reduce transactional costs, and support Pakistan’s efforts to boost international trade competitiveness. Exporters have long demanded the removal of additional levies that increase the cost of doing business, and this decision marks a positive step toward creating a more facilitative export environment.