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Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired a meeting of the Economic Coordination Committee (ECC) of the Cabinet, said an official statement of the Ministry of Finance on Wednesday.
The ECC deliberated on a detailed agenda and made the decisions on summaries submitted by the Cabinet Division.
The ECC reviewed a summary submitted by the Ministry of Commerce regarding the sharing of subsidy on imported urea on a 50:50 basis. It approved the release of Rs 10 billion to the Ministry for immediate settlement of outstanding dues related to imported urea subsidies.
The decision aims to alleviate the financial burden and ensure the smooth and timely availability of urea to meet agricultural needs. The ECC further directed the provinces to fulfill their share of subsidy payments, emphasizing equitable cost-sharing among all stakeholders.
The ECC considered a summary from the Ministry of Federal Education and Professional Training seeking approval for the provision of a Rs 1 billion government guarantee to launch the Pakistan Skills Impact Bond (PSIB), with NAVTTC as the issuer of the bond. The Committee advised the Ministry to develop a comprehensive plan and resubmit the summary for consideration.
The ECC approved a summary submitted by the Ministry of Housing and Works for the provision of a Technical Supplementary Grant (TSG) amounting to PKR 1.884 billion. The grant will facilitate necessary expenditures and address the financial requirements of ongoing projects under the Ministry.
The ECC approved a proposal regarding the establishment of the Siah Dik Copper Project in District Chagai, Balochistan, submitted by the Ministry of Industries and Production. It approved the declaration of Private Export Processing Zone (Saindak EPZ), under Section 9A read with Section (k) of the Ordinance. The decision aims to facilitate the development and export potential of the mineral sector in the region.
The ECC approved a budget allocation of Rs. 536.1 million for the Ministry of Information and Broadcasting as a Technical Supplementary Grant (TSG) under Demand No. 66 during FY 2024-25 from Cost Center IB5501 (Publicity and Advertising, I&B Division) under Demand No. 45: Grants, Subsidies, and Miscellaneous Expenditure.
The ECC approved a TSG amounting to Rs. 2,022,857,991/- (approx. USD 7,276,468/-) for the Digital Economy Enhancement Project (DEEP) NADRA, as surrendered by the Ministry of Information Technology & Telecom for the year 2024-25 in favor of the Ministry of Interior.
The ECC reiterated its previous decision regarding a quota ratio local/imported wheat for the remaining months of the current fiscal year at subsidized rates.
The ECC approved a proposal from the Ministry of Law and Justice to transfer funds amounting to Rs. 21,250,000 to the Islamabad High Court, Islamabad, through a Technical Supplementary Grant for the repair and maintenance works of the buildings of the Islamabad High Court.
The ECC approved a Technical Supplementary Grant (TSG) of Rs. 1,086 billion to pay outstanding claims of ZTBL under the Prime Minister’s Fiscal Package for Agriculture in the wake of Covid-19.
The ECC approved the restructuring plan for PRAL (Pakistan Revenue Automation Limited). It also decided on a revised financial flow and budgeting mechanism, including the opening of selected cost centers and the diversion of current year funding in consultation with the Secretary Finance. The provision of Rs. 3.7 billion as a Technical Supplementary Grant (TSG) for the current financial year 2024-25 was approved.
The ECC approved a Technical Supplementary Grant (TSG) of Rs. 523.078 million for the Special Investment Facilitation Council (SIFC) for its development needs.
The ECC considered the summary regarding the security package documents for the 7.07 MW Railii-II Hydro Power Project under the Power Generation Policy 2015. It approved the GOPIA (along with the GOP Guarantee) and the draft EPA for the Railii-II Hydro Power Project.
It also approved AJ&KIA and WUA, with the contractual and payment obligations of AJ&K being backstopped and guaranteed by the GOP. The Boards of PPIB, CPPA-G, and GOAJ&K were authorized to make necessary project-specific amendments to the draft security package documents to ensure compliance with NEPRA’s Tariff Determination. The ECC directed to monitor timely financial close.
The ECC approved a Technical Supplementary Grant (TSG) amounting to Rs. 14 billion from the Prime Minister’s National Programme for Solarization of Agricultural Tubewells in Pakistan. The grant will be transferred under the Development Expenditure of the National Food Security and Research Division to the Power Division for onward payment, supporting energy efficiency in the agriculture sector.
The ECC approved the Finance Division’s proposal for the arrangement of rupee cover amounting to PKR 10 billion. This includes adjustments from the current side budgetary allocation for the current fiscal year, with USD 105.5 million allocated for the Water Infrastructure Project (WIF) funded by ADB and USD 137 million for the Flood Impact Infrastructure Project (FIIP) funded by the World Bank.
The ECC approved the inclusion of Tier 4 in the Cabinet-approved portfolio of the Prime Minister’s Youth Business and Agriculture Loan Scheme (PMYBALS). Under Tier 4, all loans will be term loans only, with an end-user rate of 0% on a first-loss basis on the disbursed portfolio. The scheme has a budgetary allocation of PKR 8.6 billion for the current fiscal year.
The ECC approved the creation of a Pension Fund through a Non-Banking Finance Company (NBFC) regulated by the SECP. Rs. 30 million was authorized as seed money for the NBFC, with Rs. 1 million approved to meet incorporation expenses. The following individuals were appointed 3 first directors of the company and a temporary Chief Executive Officer until a permanent CEO is appointed.
In concluding remarks, Finance Minister Senator Muhammad Aurangzeb emphasized the importance of ensuring timely policy measures to address critical economic, energy, and agricultural needs, with a focus on transparency and efficiency in implementation.
