ECC okays to launch Credit Guarantee Scheme for low-income group

November 30, 2022 (MLN): The Economic Coordination Committee (ECC) approved the launching of a Credit Guarantee Scheme under the Credit Guarantee Trust Fund through the Second Supplemental Trust Deed for low-income housing, a meeting of ECC presided over by the Finance Minister on Tuesday.

To expand the provision of risk cover to Finance Institutions (FIs) against financing in the housing sector the World Bank approved an amount of $85 million for the Credit Guarantee Scheme.

During the meeting, Finance Division submitted a summary of the launch of the Credit Guarantee Scheme.

It was presented that Pakistan Mortgage Refinance Company Limited (PMRC) has been set up as a joint initiative of the Government and Commercial Banks/Development FIs (DFIs) to provide medium and long-term funding to primary mortgage lenders by raising from the capital debt market at cheaper rates.

Another summary was submitted by the Ministry of National Food Security & Research on the fixation and notification of Minimum Indicative Prices of Tobacco Crop 2023.

After detailed deliberation, the ECC approved minimum indicative prices for various types of tobacco for different areas for the 2023 tobacco crop.

ECC approved the summary submitted by the Power Division for the Uniform tariff of K-electric that KE’s applicable uniform variable charge is required to be modified to maintain the uniform tariff across the country with category-wise increases.

Which includes general supply tariff-residential, general supply tariff-commercial, industrial supply tariff, bulk supply tariff, agriculture tariff, and public lighting with a recovery period of four months.

It was also shared such adjustment shall be applicable on the consumption from Oct-22 to Jan-23 to be recovered from consumers in Dec-22 to Mar-23, respectively.

Power Division submitted another summary on the settlement of payables to government-owned Power Plants at par with IPPS. The ECC approved a technical supplementary grant of Rs93.438 billion in three tranches of Rs31.146bn each.

A summary submitted by the Ministry of Commerce of Individual Tariff Rationalization proposals from different sectors for review of Regulatory Duties (RDs).

The ECC after discussion approved the proposal to reduce RD on Disodium Carbonate (PCT – 2836.2000) from the current rate of 20% to 10% and imposed RD at a rate of 5% on filament Yarns (PCT 5402.3300, 5402.4600, 5402.4700, 5402.5200 and 5402.6200).

The ECC discussed the summary submitted by the Ministry of National Food Security & Research submitted on Kissan Package-2022 and approved the base tariff for electric tube wells at Rs13/kWH from Rs16.60/kWH, providing relief to farmers of Rs3.60/kWH effective from 1st Nov’22 to compensate the damage caused by the floods and heavy rains.

The Ministry of Information and Broadcasting submitted a summary for the allocation of the budget to launch a comprehensive media awareness campaign on government initiatives, programs, and projects.

The ECC after detailed discussion approved a Supplementary Grant of Rs2 billion for flood-related media campaigns.

ECC approved Rs. 15 billion in favor of the Election Commission of Pakistan for the Current Financial Year 2022-23. Out of Rs. 15 billion, Rs. 5 billion will be released immediately while the balance will be released in tranches on utilization of the first tranche.

The ECC also approved a Technical Supplementary Grant amounting to Rs162.521 million in favor of the Ministry of Housing and Works in addition to approving Rs250 million for the execution of a development scheme titled “Construction of Railway underpass, Gojra, District Toba Tek Singh” and Rs144.210 million for the execution of development schemes in District D.I. Khan.

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