The government has notified a new private sector–dominated board of administrators of the Export Development Fund (EDF) to scrutinise spending from the fund’s proceeds and limit the role of the bureaucracy in managing its affairs.

According to an official notification, the 22-member board will be headed by Omer Saeed, Chief Executive Officer of Service Long March Tyres Limited. Commerce Minister Jam Kamal Khan and the secretary commerce have been removed from the board as chairman and vice chairman after amendments were made to the law governing the affairs of the fund.

Saeed has been appointed as the new chairman following amendments to the EDF Act introduced last month in light of recommendations made by the prime minister’s panel on the EDF.

The government has appointed the new chairman in place of Jam Kamal, the minister for commerce. The position of vice-chairman of the board, previously held by the secretary commerce, has also been abolished.

Earlier, nine private sector–led panels had submitted recommendations to the prime minister to improve economic conditions, minimise red tape and enable business activity. The exercise was steered by Minister of State for Finance Bilal Kayani, although the overwhelming majority of these recommendations are still pending implementation.

On the panel’s recommendation, the government has already abolished the 0.25% surcharge on exporters and decided to scrutinise utilisation of the fund. About two months ago, the EDF had a pending balance of Rs52 billion, which had been accumulated through the 0.25% surcharge.

The prime minister had ordered a third-party audit of the EDF in line with international standards and directed the immediate abolition of the export surcharge, according to an announcement by the PM Office.

Last month, the EDF board approved Rs15 billion to support rice exporters facing stiff international competition and declining volumes. It approved a rebate ranging from 3% to 9% for rice exporters until June this year. However, there has been some opposition to allocating Rs15 billion for rice exporters.

The new board composition shows that, out of 22 members, only six are government officials. These include the secretaries of finance, commerce, national food security and industries, the chief executive of the Trade Development Authority of Pakistan, and the executive director of the EDF.

Private members include representatives of leading exporters such as Style Textile Private Limited, Interloop Limited, Artistic Milliners Private Limited, Nishat Mills Limited, Novatex Limited, Verdora Ventures and Systems Limited.

The government has also notified the chairperson of the Pakistan Business Council, the president of the Federation of Pakistan Chambers of Commerce and Industry, the chairman of Surgical Goods Manufacturers, the chairman of the Rice Exporters Association of Pakistan, the chairman of Pakistan Sports Goods Manufacturers, the chairman of the All Pakistan Meat Exporters Association, and the chairman of the Pakistan Pharmaceutical Manufacturers Association.

Parliament last month passed amendments to the EDF law to provide private sector representation, including top exporters and industry representatives. The amendments focus on improving efficiency, strengthening corporate governance and potentially converting the EDF into a non-profit company to better support export sector growth.

Under the amendments, it is now mandatory to appoint the top four exporters based on the previous three years’ performance, one top non-textile and apparel exporter based on three-year data, and one member each from the agriculture, IT and industry sectors.

The board of administrators will review the viability and feasibility of the existing portfolio of projects and decide whether these should continue or be discontinued. It will also review the performance of completed projects, oversee capacity building and steer reforms in the EDF’s governance structure and associated institutional arrangements.

Through the legal amendments, the government has already abolished the role of the commerce ministry as the secretariat of the board and disbanded the board’s executive committee.