The federal government has granted the Export Development Fund (EDF) board permission to invest in government securities. The EDF board, which operates under the Ministry of Commerce, will use these investments to counter inflationary impacts and ensure the fund remains sustainable for the foreseeable future.

The Ministry of Commerce originally requested that the Economic Coordination Committee (ECC) of the cabinet permit the EDF board to transfer funds from a public/treasury account to a commercial bank account for investment in government papers. During a recent meeting, the ECC was informed that the legislative process for this move received formal assent from the president of Pakistan on January 26, 2026. Following this, the federal government appointed new members to the EDF board, with a notification issued on February 17, 2026.

The Ministry of Commerce informed the ECC that the fund has faced financial sustainability challenges because its major source of revenue—which was intended to reduce the cost of doing business for exporters—had been halted. To protect resources from inflation, the EDF board discussed various measures during its 93rd and 96th meetings. During those meetings, the board decided to approach the Finance Division to seek federal government approval to invest funds in fixed-income government securities or transfer them to a National Bank of Pakistan (NBP) account to earn a return on investment.

The Ministry of Commerce noted that the Finance Division examined the proposal and supported the request for investment in government securities. However, the Finance Division suggested that any shift from a public account to a commercial account would require federal government approval under Section 23 (2) of the PFM Act, 2019. The ECC subsequently considered a summary titled "Investment of EDF Funds" and approved the proposal.

The EDF was established to promote and develop Pakistan's exports by providing financial assistance for various initiatives aimed at improving export competitiveness and facilitating exporters. The fund is managed by the EDF board under the Ministry of Commerce.