Film & Drama Finance Fund (FDFF) is a flagship initiative of the Ministry of Information & Broadcasting, implemented through the Directorate of Electronic Media & Publications (DEMP), in line with the National Film & Broadcasting Policy 2018. Established through Federal Cabinet approval and notified vide S.R.O. 1011(I)/2023 dated 5th August 2023, FDFF represents Pakistan’s first structured financial support mechanism aimed at the revival and sustainable development of the film and drama industry.
The Fund seeks to strengthen Pakistan’s creative economy by providing grants and soft loans to film and drama producers, facilitating high-quality productions, nurturing new talent, and uplifting local content to international standards. FDFF also advances broader national objectives by promoting Pakistan’s cultural identity, enhancing its soft image, and encouraging artistic excellence, while contributing to employment generation and overall industry growth.
The distribution, utilization, and oversight of the Fund are managed by a duly notified Fund Management Committee (FMC), constituted under the S.R.O., comprising representatives from relevant government departments and private sector stakeholders. The FMC ensures transparent, merit-based, and efficient allocation of financial support in accordance with approved policy guidelines.

The Fund is supposed to invite donations from multiple sources including the corporate sector as part of their Corporate Social Responsibility (CSR).

The name of the Film and Drama Finance Fund has been included in the Thirteenth Schedule of the Income Tax Ordinance 2001, after approval from Cabinet. After the inclusion of the Fund in the Thirteenth Schedule, the donors can claim tax credit on donation to the Fund.

Furthermore, the Ministry of Information and Broadcasting has requested the FBR to proceed with necessary action for placement of the Film and Drama Finance Fund in Table I of sub-clause (1) of clause 66 of Part 1of the Second Schedule to the Ordinance to grant exemptions to income derived by the Fund.

FBR has granted the following tax incentives to the Film and Drama Industry in 2022 Finance Act. In order to promote the local film industry, following new measures have been introduced:

• 5 Years Tax Holiday to Cinema Operations
• 5 Years Exemption to Income from Feature Film Production
• 5 Years Exemption from Advance Tax on Imports of Cinematographic Equipment
• Exemption from Withholding on Payments to Distributor, Producer or Importer of Feature Film
• High Advance Tax on Foreign TV Drama and Advertisements
• 5 Years Exemption from Sales Tax on Imports and Supply of Cinematographic Equipment
• 5 Years Zero-Rating of Customs Duties on Imports of Cinematographic Equipment

1. Any licensing authority certifying any foreign TV drama serial or a play dubbed in Urdu or any other language, for screening and viewing on any landing rights channel, shall collect advance tax at the rates specified in Division XA of Part IV of the First Schedule.
2. Any licensing authority certifying any commercial for advertisement starring foreign actor, for screening and viewing on any landing rights channel shall collect advance tax at the rates specified in Division XA of Part IV of the First Schedule.
3. The tax required to be collected under this section shall be minimum tax in respect of income arising from such drama serial or play or advertisement referred to in sub-section (1) or (2) of this section.