The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved allocation of funds equivalent to $25 million for setting up the National Disaster Risk Management Fund (NDRMF).
Finance Minister Ishaq Dar chaired the ECC meeting. In consideration of a proposal by Economic Affairs Division (EAD), the ECC approved an allocation of funds equivalent to $25 million for National Disaster Risk Management Fund (NDRMF). EAD has set up the fund which aims to have a government-owned sustainable mechanism to support disaster risk financing instruments that can enhance country’s resilience to natural calamities.
The Asian Development Bank has shown an indicative assistance of $1.2 billion as a loan for this fund. EAD and ADB signed the loan agreement for $200 million on 2nd December 2016, as the first tranche against the total amount. The fund will enable the government to immediately and effectively respond to natural calamities. ECC also considered and approved NEPRA’s proposal to allow exemption from withholding tax on dividends to the transmission line projects under Transmission Policy 2015.
ECC also accorded approval for a grant of Rs12 million as equity share of government to clear liabilities and financial obligations so as to facilitate the process of winding up of Pakistan Textile City, (PTCL) Ltd. The chair also directed the formation of a committee comprising SAPM on law, representatives from NBP, SECP and the CEO of PTCL to oversee smooth finalisation of the company’s winding up process.
