Finance Minister Chairs ECC Meeting
Islamabad : The Economic Coordination Committee (ECC) of the Cabinet met under the chairmanship of the Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, to deliberate on important economic and development matters.
The meeting was attended by Federal Minister for Petroleum Ali Pervaiz Maik, Special Assistant to Prime Minister for Industries & Production Haroon Akhtar Khan, federal secretaries and senior officials from relevant ministries and government departments.
During the session, the ECC considered a summary submitted by the Ministry of Maritime Affairs regarding the arrest of Pakistan National Shipping Corporation (PNSC) ships in South Africa due to alleged claims of M/s Coniston against Pakistan Steel Mills Ltd. After deliberations, the ECC directed the Finance Division to reimburse Rs 330.526 million to PNSC through a Technical Supplementary Grant (TSG) as per an earlier ECC decision taken in 2017, while further instructing the Ministry of Industries & Production to expedite the finalization and settlement of the arbitration case in court and report back within three months on the progress achieved in resolving this matter on priority basis.
The ECC also approved a proposal of the Power Division for the uniform application of fuel charges adjustment across the country. On another agenda item, the ECC approved the term sheet jointly prepared by relevant stakeholders including NEECA, SBP and banks, based on the Draft Tripartite Agreement for the launch of the Prime Minister’s Fan Replacement Programme. To kickstart the programme, the ECC also approved a TSG of Rs 2 billion in favour of NEECA.
The ECC approved a TSG of Rs 250 million for the National Security Division for its Strategic Policy Planning Cell, with the decision that the remaining amount would be released in a phased manner subject to contextualization and rationalization of expenditures in consultation with the Finance Division. The Committee further accorded in-principle approval to a proposal submitted by the National Disaster Management Authority (NDMA) regarding federal assistance for the affectees of recent monsoon rains and approved a relief package of Rs 5.8 billion, directing the Finance Division to immediately release Rs 4 billion to mitigate the sufferings of the affected people.
On a proposal from the Finance Division regarding the subsidy for RAAST QR Code based person-to-merchant payments, the ECC approved an allocation of Rs 3.5 billion through TSG for the current financial year with provision for continuation for three years, aimed at accelerating digital adoption and promoting the digital economy. The ECC further decided that the State Bank of Pakistan would notify the scheme immediately and submit a comprehensive evaluation report to the ECC on the operational effectiveness of the MDR subsidy scheme by the close of the fiscal year.
The ECC also considered and approved a summary submitted by the Industries & Production Division pertaining to the New Energy Vehicle Policy 2025-30. The Committee commended the Division for preparing a comprehensive and forward-looking policy aligned with international best practices and recognized its potential to steer the country’s transition towards electric vehicles.
The ECC was further briefed on the risk coverage scheme for small farmers and underserved areas which is designed to provide coverage to subsistence farmers in Punjab and Sindh as well as all farmers in Khyber Pakhtunkhwa, Balochistan, Azad Jammu & Kashmir and Gilgit-Baltistan in view of their low share in current agricultural credit disbursements. The scheme is expected to add more than 750,000 new borrowers to the formal credit system over the next three years.
Finally, the ECC reviewed the overall gas sector and supply situation in the country and directed the Ministry of Petroleum to take effective measures to control losses in the sector and ensure operational efficiency.
Sohail Majeed is a Special Correspondent at The Diplomatic Insight. He has twelve plus years of experience in journalism & reporting. He covers International Affairs, Diplomacy, UN, Sports, Climate Change, Economy, Technology, and Health.
