August 30, 2024 (MLN): The Economic Coordination Committee (ECC) of the Cabinet allowed the Ministry of Communications/National Highway Authority to proceed with provisions of the Framework Agreement between China and Pakistan on the Realignment of KKH (Thakot-Raikot) under CPEC. 

This is under provisions of rule-5 of the Public Procurement Rules, 2004 for procurement of construction of realignment of the KKH (Thakot Raikot Section 241 KM) project under CPEC (Phase-II).

The ECC also considered the summary tabled by Ministry of Communications regarding “Chakdara-Timergara, 39 Km Road Project (N-45)”.

It was discussed that Rule-5 of Public Procurement Rules-2004 PPRA can be invoked after the authorization of ECC and consultations with relevant stakeholders.

Foregoing in view, the ECC authorized the Ministry of Communications/National Highway Authority to proceed per Public Procurement Rule-5 in Procurement of Consultancy Services required for Section-1 (Chakdara-Timergara, 39km) under Chakdara-Chitral Road Project (N-45).

Lastly, a summary presented by the Finance Division regarding “Proposal for Revision in Home Remittances Incentive Schemes” was also considered.

After detailed discussion and deliberation, as per the proposal of SBP, the ECC approved the following revisions to the two Remittances Incentive Schemes as under: 

Reimbursement of Telegraphic Transfer (TT) Charges Scheme:

• The flat reimbursement rate of SAR 30 per eligible transaction will be divided into Fixed (SAR 20) and Variable (SAR 08-15) components.
• The variable component will be linked to the incremental growth in remittances.
• Banks will receive higher rewards based on their performance in increasing remittance inflows.

Incentive Scheme for Exchange Companies (ECS):

• The base rate for the fixed component will be increased from Rs1 to Rs2 per USD surrendered.
• The variable component will be linked to the incremental growth in remittances.
• ECSs will receive higher rewards based on their performance in mobilizing remittances.

These revisions are expected to further incentivize banks and exchange companies to increase remittance inflows, thereby boosting the country's foreign exchange reserves.

The Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb chaired the said meeting. 

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Posted on: 2024-08-30T11:06:07+05:00