ECC approves export incentive package

–The Economic Coordination Committee approves three new export promotion schemes, Rs. 4 billion for international power arbitration cases, and a series of policy measures covering energy, petroleum and social security.

Aftab Maken

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved a package of export promotion measures, including subsidized financing schemes and a performance-based export rebate, as the government stepped up efforts to boost exports and strengthen industrial competitiveness.

The meeting, chaired by Finance Minister Muhammad Aurangzeb at the Finance Division, approved three dedicated Export Finance Subsidy Schemes proposed by the Finance Division to support exporters and accelerate export-led economic growth.

The package includes an enhanced EXIM Bank-administered Export Finance Scheme (E-EFS), the launch of a new Long-Term Export Growth Financing Facility (LTEGFF), and a performance-based Rebate on Incremental Exports. The measures are designed to provide exporters with fixed low-cost financing, improve access to credit for exporters and importers, and expand support for small and medium-sized enterprises (SMEs).

The ECC directed the relevant authorities to submit a performance review after six months to assess the effectiveness of the newly approved schemes and their contribution to export growth.

Pakistan has been pursuing export-led growth as a central pillar of its economic strategy while implementing reforms under its stabilization programme. The government has repeatedly stated that increasing exports, improving industrial productivity and expanding the country’s manufacturing base are essential for achieving sustainable economic growth and narrowing the external financing gap.

The committee also approved a Technical Supplementary Grant of Rs. 4 billion for the Power Division to meet expenses related to multiple international arbitration proceedings initiated by independent power producers (IPPs) and major utility shareholders.

In another decision, the ECC approved a proposal to transfer pensioners of closed Generation Companies (GENCOs) to their respective pension-disbursing Distribution Companies (DISCOs) to ensure the continued payment of retirement benefits.

The committee also endorsed a Petroleum Division proposal declaring the Pab reservoir in the Rehman-8 ST-3 well as a Tight Gas Reservoir under the Tight Gas (Exploration and Production) Policy, 2011. The move is expected to facilitate the development of unconventional gas resources and encourage additional upstream investment.

The ECC further approved the Employees’ Old-Age Benefits Institution (EOBI) budget estimates for fiscal year 2025-26, along with revised estimates for fiscal year 2024-25, following a summary submitted by the Ministry of Overseas Pakistanis and Human Resource Development.

The committee also approved a Petroleum Division proposal regarding tariff fixation for indigenous gas supplied to RLNG-based power plants connected to the SNGPL network for the period covering April to June 2026.

The meeting was attended by Planning Minister Ahsan Iqbal, Commerce Minister Jam Kamal Khan, Education Minister Khalid Maqbool Siddiqui, Investment Minister Qaiser Ahmed Sheikh, Petroleum Minister Ali Pervaiz Malik, Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan, federal secretaries and senior officials from relevant ministries and regulatory bodies.