Govt advances reform agenda

July 25,2025(MLN): A set of major economic initiatives including endorsement of a strategy for boosting steel sector exports, adoption of Pakistan’s Green Taxonomy, issuance of a government-backed Skill Impact Bond, and new housing finance initiatives, alongside revisions in telecom spectrum management and RBS charges were approved by the Economic Coordination Committee (ECC).

Khurram Schehzad, Adviser to the Finance Minister, shared highlights of the ECC session on his official X (formerly Twitter) account, reinforcing the government’s ongoing reform agenda and commitment to investor outreach.

The ECC meeting was chaired by Finance Minister Senator Muhammad Aurangzeb and attended by key Federal Ministers and senior officials from relevant ministries and divisions.

A major highlight was the ECC’s approval of the Ministry of Commerce’s proposal to enhance industrial competitiveness in the steel sector in line with the National Tariff Policy 2025–30.

The strategy focuses on lowering production costs and improving export performance.

The Committee also greenlighted a Ministry of Commerce request to file an appeal in the Supreme Court against a Lahore High Court verdict related to gas/RLNG tariff concessions granted to M/s Ghani Glass Ltd, noting that energy subsidies for export sectors have already been withdrawn.

On the environmental front, the ECC approved Pakistan’s Green Taxonomy, presented by the Ministry of Climate Change and Environmental Coordination, to help direct finance towards environmentally sustainable projects.

The initiative was lauded as a crucial step toward climate resilience and green growth.

The Committee also backed a government guarantee of Rs1 billion for the launch of the Pakistan Skill Impact Bond (PSIB), an outcome-based financing instrument aimed at enhancing technical and vocational training.

The ECC advised the Ministry of Education to increasingly adopt Public-Private Partnerships and gradually reduce reliance on sovereign guarantees.

For the housing sector, a markup subsidy and risk-sharing scheme was approved to support affordable housing finance.

The ECC stressed the importance of building a comprehensive national housing database in collaboration with federal and provincial bodies to enhance targeting and implementation.

In the telecom sector, the ECC approved revised charges for Radio-Based Services (RBS) and emphasized periodic updates aligned with economic and technological developments.

The composition of the advisory committee overseeing IMT spectrum release was also revised to accelerate progress on next-generation broadband infrastructure.

The Ministry of Industries and Production briefed the Committee on vegetable ghee and oil pricing trends.

While stock levels remain adequate, the ECC voiced concern over limited transmission of falling global prices to local consumers and called for coordinated market monitoring to prevent distortion and cartelization.

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