ECC approves moving EDF funds to bank account for investment

The Economic Coordination Committee has approved a proposal allowing the Export Development Fund's board to transfer money out of its public treasury account into a commercial bank account so that it can be invested in government securities, after the suspension of the Export Development Surcharge closed off the fund's main source of revenue.

According to an official document cited by Business Recorder, the Ministry of Commerce put the proposal to the ECC in a summary dated October 6, 2026, seeking permission to invest EDF resources in government securities to generate income and keep the fund financially sustainable.

The commerce ministry told the committee that collection of the surcharge had been suspended from December 1, 2025 on the prime minister's directions, following recommendations of a working group set up by the Prime Minister's Office. The suspension was given effect through Finance and Revenue Notification No. SRO/2335(I)/2025, as part of the government's effort to lower the cost of doing business for exporters.

In parallel, the government began amending the Export Development Fund Act and reconstituting the fund's board. That legislative process ended with the president's assent on January 26, 2026, and new board members were appointed by notification on February 17, 2026.

With its main revenue stream halted, the ministry said, the fund needed alternative income to offset the hit to its resources and stay sustainable over the coming years. The matter came up at the 93rd and 96th meetings of the EDF Board, which decided to approach the Finance Division for facilitation and for approval to place EDF money in fixed-income government securities, or to move it to an interest-bearing account with the National Bank of Pakistan.

The ministry then took the proposal to the Finance Division, explaining that the EDF is managed through the Public Account, is non-lapsable and can earn income from its investments. The Finance Division examined it and backed investment in government securities, but observed that shifting funds from a government account to a commercial bank account would require federal government approval under Section 23(2) of the Public Finance Management Act, 2019.

On that basis the commerce ministry sought the ECC's approval for the board to make the transfer, and the committee granted it. The arrangement is intended to let the fund earn on its available resources while the surcharge suspension continues to reduce the cost burden on exporters. The official document did not give figures for the size of the fund or the return the investment is expected to earn.