ISLAMABAD: Pakistan has earmarked the entire Rs24 billion ($86.5 million) currently held by its Export Development Fund for investments aimed at supporting businesses, Prime Minister Shehbaz Sharif’s office said on Saturday, as the government seeks to channel the revamped fund toward boosting exports.

The move comes after a restructuring of the EDF that has given private-sector representatives a greater role in its management and shifted its focus toward initiatives directly linked to export growth rather than infrastructure projects. Pakistan has struggled for years to expand and diversify exports while its economy remains vulnerable to recurring balance-of-payments pressures.

“Following restructuring and reforms, the leadership of the EDF has been entrusted to private-sector experts,” Sharif was quoted as saying at a meeting on the fund in Lahore.

“All the capital available with the EDF is being utilized to facilitate the business community,” he added.

The fund was established to finance measures aimed at developing and promoting Pakistan’s exports. Its overhaul has been under way since last year, when the government moved to reform its governance and direct its resources toward initiatives with a measurable impact on export growth.

A private-sector-dominated 22-member Board of Administrators was constituted in February. Six members of the board represent the public sector.

Sharif on Saturday also welcomed export insurance coverage being provided by the EDF and the Export-Import Bank of Pakistan, particularly for small and medium-sized enterprises.

The two institutions recently signed an approximately Rs3 billion ($10.8 million) SME Risk Pool agreement aimed at expanding smaller exporters’ access to export credit insurance and protecting them against non-payment risks.

“This decision will facilitate the business community in increasing the volume of exports,” the prime minister said, describing the initiative as a significant step toward promoting small and medium-sized businesses.

Officials told the meeting that the revamped EDF was also pursuing initiatives in research, skills development and competitiveness, while efforts were under way to secure continued preferential access for Pakistani exports to European markets under the European Union’s GSP Plus scheme.

Sharif said the measures reflected the government’s commitment to developing an export-led economy and strengthening Pakistan’s position as an investment destination.