December 19, 2024 (MLN): The Economic Coordination Committee (ECC) of the Cabinet on Wednesday, approved allocating Rs10 billion to clear outstanding urea subsidy dues.
It emphasized equitable cost-sharing, directing provinces to fulfill their respective shares of subsidy payments.
The ECC reviewed a proposal from the Ministry of Federal Education and Professional Training to provide a Rs1bn government guarantee for launching the Pakistan Skills Impact Bond (PSIB), with NAVTTC as the bond issuer.
It directed the Ministry to create a detailed plan and resubmit the proposal for approval.
This grant will support essential expenditures and meet the financial needs of ongoing projects under the Ministry.
The ECC approved a proposal from the Ministry of Industries and Production to establish the Siah Dik Copper Project in District Chagai, Balochistan.
It also approved declaring the Private Export Processing Zone (Saindak EPZ) to boost the development and export potential of the region's mineral sector.
A notable decision was the Rs523.078 million allocation for the Special Investment Facilitation Council (SIFC) to support its development needs.
The ECC reaffirmed its previous decision on the quota ratio for local and imported wheat at subsidized rates for the remaining months of the current fiscal year.
Additionally, it approved a proposal from the Ministry of Law and Justice to transfer Rs21.25mn to the Islamabad High Court for building repair and maintenance through a Technical Supplementary Grant (TSG).
The ECC approved a TSG of Rs1.086bn to settle outstanding claims of ZTBL under the Prime Minister’s Fiscal Package for Agriculture due to Covid-19.
Additionally, the ECC approved the restructuring plan for PRAL, including a revised financial flow, budgeting mechanism, and a TSG of Rs3.7bn for the financial year 2024-25.
Other significant approvals included Rs1bn for launching the Pakistan Skills Impact Bond (PSIB) with NAVTTC as the bond issuer, and Rs1.884bn for ongoing projects under the Ministry of Housing and Works.
Additional approvals included Rs536.1mn for the Ministry of Information and Broadcasting and Rs2.02bn ($7.2mn) for the Digital Economy Enhancement Project (DEEP) NADRA, transferred from the Ministry of IT and Telecom to the Ministry of Interior for the year 2024-25.
The meeting agreed upon Rs3.7bn for the restructuring of Pakistan Revenue Automation Limited (PRAL) and supported a revised financial mechanism.
This includes establishing selected cost centers to manage the distribution of funds.
In the energy sector, the ECC approved a security package for the 7.07 MW Railii-II Hydro Power Project and authorized necessary amendments to ensure it complies with NEPRA's tariff determinations.
The ECC allocated Rs14bn for loans under Tier 4 of the Prime Minister’s Youth Business and Agriculture Loan Scheme (PMYBALS), providing term loans with a 0% interest rate for end-users on a first-loss basis.
To promote sustainable pensions, the ECC approved the creation of a Pension Fund through a Non-Banking Finance Company (NBFC), with Rs30mn allocated as seed money and Rs1mn for incorporation expenses.
The meeting approved the inclusion of Tier 4 in the Prime Minister’s Youth Business and Agriculture Loan Scheme (PMYBALS), with all loans being term loans at a 0% interest rate on a first-loss basis, and a budgetary allocation of Rs8.6bn for the current fiscal year.
Additionally, the ECC approved a proposal for arranging Rs10bn in rupee cover, including adjustments from the current budget, with $105.5mn allocated for the Water Infrastructure Project (WIF) funded by ADB and $137mn for the Flood Impact Infrastructure Project (FIIP) funded by the World Bank.
Finance and Revenue Minister Senator Muhammad Aurangzeb Chairs ECC Meeting.
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Posted on: 2024-12-19T11:20:38+05:00
