ISLAMABAD: The Finance Ministry has agreed in principle to release the amount collected in Export Development Fund (EDF) to the Ministry of Commerce (MoC) on yearly basis.
These funds will enable the Ministry of Commerce to further enhance export promotion related activities like road shows, exhibitions and others in foreign countries.
Sources at the Finance Ministry told Customs Today that Finance Minister Ishaq Dar, the chairman of Cabinet Committee on Production and Exports, had approved a proposal of the Ministry of Commerce to provide funds on yearly basis.
The Finance Ministry collects up to Rs 6 billion per year under the EDF and the accumulative collected amount has exceeded to Rs 30 billion and the Ministry of Commerce had been demanding the release of this amount but the Finance Ministry had been hindering its release on one reason or the other.
The source said that the blockage of these funds to ministry of commerce had been affecting the export promotion related activities of the ministry of commerce, therefore, Minister for Commerce took up this issue with Prime Minister in a recent meeting, who asked Finance Minister to look into this issue.
Finding soft corner from the Prime Minister and Finance Minister the MoC included this proposal in the Strategic Trade Policy Framework 201-18 (STFP-2015-18).
Finance Minister Ishaq Dar reviewed the draft of STFP-2015-18 at the forum of Cabinet Committee on Production and Exports and then in principle granted approval to the said proposal.
The source further said that after approval from the cabinet committee the draft of STFP-2015-18 had been at the table of Prime Minister waiting for approval. Once the Prime Minister will grant approval to this draft, the long awaited trade policy to be enforced.
Moreover, release of amount under EDF will also result in enhanced volume of Pakistani exports which are experiencing decline in the current fiscal year. This is why Prime Minister accorded approval to the said proposal moved by Commerce Minister.
