The government has allowed the Export Development Fund (EDF) board, which works under the Ministry of Commerce, to invest in government securities. The Ministry of Commerce had asked the Economic Coordination Committee (ECC) of the cabinet to permit the EDF board to transfer funds from the public/treasury account to its commercial bank account for onward investment in government papers. In a recent meeting, the ECC was informed that the legislative process led to formal assent of the president of Pakistan on January 26, 2026. The federal government thereafter appointed new members of the EDF board and a notification was issued on February 17, 2026. The commerce ministry apprised the forum that while considering the fact that the major source of its revenue had been halted, required for reducing the cost of doing business for exporters, the board was looking forward to countering the inflationary impact on its resources and making the fund sustainable for the foreseeable future. The matter came up for discussion during the 93rd and 96th meeting of the EDF board, where it was decided to approach the Finance Division to seek approval of the federal government for investing funds in fixed-income government securities or transferring them to a National Bank of Pakistan (NBP) account to get return on investment. The Ministry of Commerce said that the matter was raised with the Finance Division, highlighting that as per provisions of the EDF Act, the fund was managed through its public account, did not lapse and consisted of any income accruing from investment. The ministry added that the Finance Division examined the proposal and supported the EDF's request for investment in government securities while suggesting that any shift from the public account to a commercial account would require approval of the federal government under Section 23 (2) of the PFM Act, 2019. The ECC considered a summary titled "Investment of EDF Funds" and approved the proposal. EDF had been established to support the promotion and development of Pakistan's exports through financial assistance for different initiatives. These initiatives are aimed at improving export competitiveness and facilitating exporters. The fund is managed by the EDF board under the Ministry of Commerce.Following legislative amendments to the EDF Act, 1999 and with the president's approval on January 26, 2026, the federal government had appointed new members of the EDF board. The Ministry of Commerce told the ECC that the fund had been facing financial sustainability challenges. Its major source of revenue had been discontinued, which was required to reduce the cost of doing business for exporters. Consequently, the EDF board discussed different measures to protect resources from inflation and generate additional income through investments. During its 93rd and 96th meetings, the board decided to seek the Finance Division's approval to inject funds into fixed-income government securities or transfer them to an NBP account.