Govt Issues SRO to Eliminate Export Development Surcharge

In a significant move aimed at promoting the country’s exports, the government has abolished the customs duty collected under the Export Development Surcharge (EDS). A statutory regulatory order (SRO) to this effect has been issued. Previously, a 0.25% customs duty was imposed on exportable goods under the EDS, a levy introduced through the Finance Act of 1991. Exporters had recently recommended to the Prime Minister that this duty be removed in order to reduce their cost burden and enhance global competitiveness. Despite various initiatives, the country’s exports have continued to face downward pressure. From July to November, exports recorded a 6% decline, amounting to $12.84 billion. In November 2025 alone, exports dropped by 15%, totaling $2.39 billion. Industry experts believe the removal of the surcharge may provide some relief to exporters and support efforts to stabilize the declining export trend.