A landmark law designed to shift power to Pakistan’s exporters is at risk of being undermined by a lack of transparency and potential “Elite Capture,” prominent business leader Mian Zahid Hussain warned on Friday, stressing that the success of the new legislation hinges entirely on the integrity of its implementation.
While welcoming the passage of the Export Development Fund (Amendment) Bill, 2026, as a “DNA change” in national trade policy, Mr Hussain cautioned that without a transparent selection process for its new board, the Act’s objectives could be derailed before they begin.
The amendment represents a significant victory for the business community following a decade of advocacy. It reconstitutes the EDF Board to include a private-sector majority, comprised of four exporters, representatives from the non-textile, agriculture, IT, and industry sectors, the President of FPCCI, and the Chairperson of the PBC, alongside six government officials.
This reform addresses long-standing grievances over the management of the EDF, which holds approximately PKR 50 billion generated from a 0.25% surcharge on exporters” proceeds. Mr Hussain noted the fund was often treated as a “bureaucratic slush fund,” with resources used for administrative overheads rather than being fully dedicated to market access and research and development initiatives.
“By giving the private sector a majority say in how their own money is spent, the government has theoretically aligned the fund’s interests with national export targets,” Mr Hussain remarked.
However, the veteran industrialist warned of serious potential complications, specifically the risk that board seats reserved for top exporters could be monopolised by a few politically connected conglomerates. Such a scenario would leave the small and medium-sized enterprise (SME) sector, which requires EDF support the most, effectively voiceless.
Citing the recent controversy over a Rs 15 billion allocation to a single sector, which drew backlash from other industries, he described it as a preview of the “inter-sectoral conflicts” that could plague the fund if the board’s composition is not balanced and transparent.
To safeguard the Act”s integrity, Mr Hussain outlined several critical demands. He urged the Ministry of Commerce to publish clear, data-driven metrics for selecting “top exporters” to prevent political appointees from occupying these technical seats.
He further called for representatives from non-textile and emerging sectors to be empowered with the ability to veto projects that purely favour established giants, ensuring that resources are directed towards diversification efforts in IT, pharmaceuticals, and engineering. A mandatory third-party performance audit of all EDF-funded projects was also proposed, with the authority to halt funding for initiatives failing to show tangible export growth.
On the board”s leadership, Mr Hussain asserted that the Chairman should be an elected representative of the entire business community, such as the President of FPCCI, rather than an individual from a particular export sector. He also pressed the Federal Government to disclose a clear mechanism for the allocation of EDF funds.
“The business community is cautiously optimistic,” Mr Hussain concluded. “We have won the legislation; now we must win the implementation. If the proposed EDF Board is operated on professional grounds, and attention is paid to the features of the district, sectoral economy, and modern global trade, this law will become the “war room” for genuine exporters and the country will achieve the export target of 60 billion dollars.”