The government in Friday’s Federal Budget 2026-27 launch abolished the 0.25 percent Export Development Surcharge levied on export income.
Presenting the Budget 2026-27 in the National Assembly, Finance Minister Muhammad Aurangzeb said the decision was part of a strategy to support exporters, enhance cash flows and encourage export-led growth.
He said that the surcharge imposed on export income had been “completely abolished” to lower the financial burden on exporting businesses and improve Pakistan’s competitiveness in international markets.
The government seeks to sustain momentum in exports while stabilizing the economy through structural reforms and improved external sector performance.
In a related measure, the government also announced an extension in the financing period available under the Export Finance Scheme. The tenure has been increased from nine months to eighteen months, a step officials say will help exporters manage working capital requirements and ease cash-flow pressures.
The government has projected a stronger export performance in the coming fiscal year and identified export growth as a key pillar of its economic strategy.