ECC approves PSO-SOCAR joint trading company in Singapore

February 14, 2025 (MLN): The Economic Coordination Committee (ECC) has approved the incorporation of an international joint trading company in Singapore by Pakistan State Oil (PSO) and the State Oil Company of the Azerbaijan Republic (SOCAR).

This approval was granted during a meeting of the ECC of the Cabinet, chaired by the Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb.

The ECC also approved a proposal from the Ministry of Commerce regarding the inclusion of PCT/HS codes for newly notified mandatory items of the Pakistan Standards and Quality Control Authority (PSQCA).

These codes will be added to the Import Policy Order (IPO), 2022, according to the press release issued today.

The decision incorporates specific PVC and polymer-based products into the mandatory regulatory framework, ensuring compliance with Pakistan Standards.

Moreover, the ECC approved Pakistan’s membership in the New Development Bank (NDB), established by BRICS member countries.

The committee endorsed the purchase of 5,882 capital shares in the NDB, amounting to $582 million, with $116mn as paid-in capital.

The ECC further deliberated on the transfer of shares of DISCOs in the name of the President of Pakistan as proposed by the Ministry of Energy (Power Division).

The Committee approved the transfer with the observation that the approval is subject to confirmation that the transfer will have no financial implications.

ECC has approved several Technical Supplementary Grants (TSGs) to ensure financial support for key initiatives.

Under the Finance Division, Rs19.15 billion has been allocated for 133 PSDP schemes previously managed by the defunct Pakistan Public Works Department (Pak-PWD).

These funds will now be distributed among relevant ministries, divisions, and provincial governments.

The Ministry of Housing and Works has been allocated Rs5.36 billion to implement development projects under the Sustainable Development Goals (SDGs) Achievement Programme (SAP).

Out of this amount, Rs4.25 billion has been designated for Sindh, while Rs1.11bn has been allocated for Khyber Pakhtunkhwa.

Additionally, Rs1.914bn (equivalent to $6.836mn) has been approved for NADRA under the FATA TDP-ERP (KP-CCDSP) Project, ensuring the transition of 43 Citizen Facilitation Centers (CFCs) in Khyber Pakhtunkhwa.

This allocation has been reassigned from the Economic Affairs Division to the Interior Division without imposing any additional financial burden on the government.

To strengthen the healthcare sector, Rs500mn has been allocated to the Ministry of National Health Services, Regulations & Coordination (NHSR&C) for procuring life-saving medicines and vaccines.

The ECC has also directed the Ministry of Health to develop a structural plan for future pension payments.

For the President’s Secretariat (Public), Rs84mn has been granted to replace outdated official transport.

The funds will facilitate the purchase of two Hino Coaster mini-buses and three Toyota Hiace vans as part of a phased vehicle replacement strategy.

Moreover, financial support has been approved for the Digital Economy Enhancement Project (DEEP) – Component II under the Board of Investment (BoI).

This funding will assist in establishing the Pakistan Business Portal (PBP), a digital platform designed to streamline regulations, eliminate redundant laws, and enhance the ease of doing business in the country.

The Committee instructed the Ministry of Petroleum to ensure due diligence regarding specific investment approvals, particularly equity injections, as well as a timeline for the operationalization of the company.

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