EDF decides to invest in govt securities

The Economic Coordination Committee has approved a proposal allowing the Export Development Fund (EDF) board to invest its resources in government securities, The Express Tribune reported. The move follows the fund’s request to protect its finances from inflation and earn income after its main revenue source was discontinued.

The EDF board had considered investing in fixed-income government papers or moving funds from its public account to a commercial account, including one at National Bank of Pakistan (NBP). The Finance Division supported investment in government securities, while noting that a transfer to a commercial account needs federal government approval under the PFM Act, 2019. The EDF supports export development through financial assistance for initiatives aimed at improving competitiveness and helping exporters.