ECC approves Rs3.5bn subsidy for RAAST payments

August 20, 2025 (MLN): An allocation of Rs3.5 billion through a Technical Supplementary Grant (TSG) for the current financial year to subsidize RAAST QR Code-based person-to-merchant payments, with continuation for three years was approved by Economic Coordination Committee (ECC).

The decision, aimed at accelerating digital adoption and strengthening the digital economy, also directed the State Bank of Pakistan to immediately notify the scheme and present a comprehensive evaluation report on the operational effectiveness of the MDR subsidy scheme by the end of the fiscal year, according to a press release issued yesterday.

The meeting, chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, 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 departments.

A key agenda item focused on a summary submitted by the Ministry of Maritime Affairs regarding the arrest of Pakistan National Shipping Corporation (PNSC) ships in South Africa following alleged claims of M/s Coniston against Pakistan Steel Mills Ltd.

After deliberations, the ECC directed the Finance Division to reimburse Rs330.5 million to PNSC through a TSG, in line with an earlier ECC decision taken in 2017.

The Ministry of Industries & Production was further instructed to expedite finalization and settlement of the arbitration case in court and report progress within three months, treating the matter as a priority.

The Committee also approved a proposal from the Power Division for the uniform application of fuel charges adjustment nationwide.

On another agenda item, it cleared the term sheet jointly prepared by NEECA, SBP, and banks, based on the Draft Tripartite Agreement for launching the Prime Minister’s Fan Replacement Programme. To initiate the programme, the ECC approved a TSG of Rs2bn in favour of NEECA.

A TSG of Rs250m was also approved for the National Security Division to support the operations of its Strategic Policy Planning Cell, with the remaining funds to be released in phases subject to rationalization of expenditures in consultation with the Finance Division.

Additionally, in-principal approval was granted to a proposal from the National Disaster Management Authority (NDMA) regarding federal assistance for victims of recent monsoon rains.

A relief package of Rs5.8bn was sanctioned, with directions for the Finance Division to immediately release Rs4bn to ease the suffering of affected communities.

The Industries & Production Division also received approval for its summary on the New Energy Vehicle Policy 2025-30.

The ECC lauded the Division for presenting a comprehensive and forward-looking framework aligned with international best practices and emphasized its potential to facilitate the country’s transition towards electric vehicles.

Members were further briefed on the risk coverage scheme for small farmers and underserved areas, designed to extend protection to subsistence farmers in Punjab and Sindh, as well as all farmers in Khyber Pakhtunkhwa, Balochistan, Azad Jammu & Kashmir, and Gilgit-Baltistan, given their lower share in current agricultural credit disbursements.

The scheme is projected to bring more than 750,000 new borrowers into the formal credit system over the next three years.

Furthermore,ECC examined the overall gas sector and national supply situation, directing the Ministry of Petroleum to adopt effective measures to reduce sectoral losses and improve operational efficiency.

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