BeNewz
Related Articles
Aftab Maken
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet, chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, Friday approved a series of major initiatives across several key sectors, including industry, housing, telecommunications, and the environment. The decisions aim to drive economic growth, promote sustainability, and improve services for Pakistani citizens.
Industrial and Economic Reforms
The ECC focused on bolstering industrial competitiveness, particularly in the steel sector. A report from the Ministry of Commerce was endorsed to align the National Tariff Policy 2025–30 with the goal of reducing production costs for steel, making Pakistani products more competitive in the export market.
In a related move, the committee approved the Ministry of Commerce’s plan to appeal a Lahore High Court decision regarding gas tariff concessions for M/s Ghani Glass Ltd. The ECC noted that these special tariffs for export-oriented sectors have been completely withdrawn and are no longer available to any industry.
The committee also officially recognized the ship breaking and recycling industry, a move recommended by the Ministry of Maritime Affairs. However, the ECC requested data from the Power Division on the sector’s electricity consumption to better assess the impact of applying industrial power tariffs.
Housing, Skills, and Telecom
To address the need for affordable housing, the ECC approved a new markup subsidy and risk-sharing scheme. This initiative is designed to make low-cost housing more accessible to a wider population. The committee also emphasized the need for a unified, national database of the housing sector to ensure the scheme effectively targets those who need it most.
In a push for skills development, a government guarantee of Rs. 1 billion was approved for the Pakistan Skill Impact Bond (PSIB). This program uses an outcomes-based financing model to improve training and job readiness. The ECC encouraged the Ministry of Federal Education and Professional Training to explore similar initiatives using a public-private partnership model to reduce reliance on government guarantees in the future.
The ECC also addressed the telecommunications sector by approving a revision of charges for Radio-Based Services (RBS). The Ministry of Information Technology and Telecommunication was directed to ensure these charges are updated every three to five years to keep pace with economic and technological changes. Additionally, a revised advisory committee composition was endorsed to oversee the release of the IMT spectrum, which is essential for improving next-generation mobile broadband services.
Environment and Consumer Protection
In a landmark decision for environmental policy, the ECC approved Pakistan’s Green Taxonomy. This initiative, which the committee chairman called “long overdue,” is expected to play a crucial role in helping green projects in Pakistan access necessary financing.
The committee also discussed the pricing of vegetable ghee and oil. While the Ministry of Industries and Production assured the ECC that national stock levels are sufficient, the committee expressed concern that declining international prices were not being fully passed on to consumers. They advised close monitoring to prevent price distortions and potential price-fixing, and called for coordination with the Competition Commission of Pakistan and provincial governments.
