The Economic Coordination Committee (ECC) of the Cabinet, chaired by Federal Minister for Finance and Revenue Muhammad Aurangzeb, approved a range of financial initiatives during its latest meeting, addressing pressing economic, agricultural, and development needs for the fiscal year 2024-25.
The ECC approved a Rs. 10 billion allocation to settle outstanding urea subsidy dues to ensure timely availability of fertilizers for the agriculture sector. It emphasized equitable cost-sharing, directing provinces to fulfill their respective shares of subsidy payments.
The committee sanctioned Rs. 14 billion from the Prime Minister’s National Programme for Solarization of Agricultural Tubewells. The funds, transferred to the Power Division, aim to enhance energy efficiency in the agriculture sector.
A Technical Supplementary Grant (TSG) of Rs. 1.086 billion was approved to pay outstanding claims of the Zarai Taraqiati Bank Limited (ZTBL) under the Prime Minister’s Fiscal Package for Agriculture introduced during the Covid-19 pandemic.
The ECC approved Rs. 3.7 billion for restructuring Pakistan Revenue Automation Limited (PRAL) and endorsed a revised financial mechanism, including the creation of selected cost centers for funding distribution.
A notable decision was the Rs. 523.078 million allocation for the Special Investment Facilitation Council (SIFC) to support its development needs.
Other significant approvals included Rs. 1 billion for launching the Pakistan Skills Impact Bond (PSIB) with NAVTTC as the bond issuer, Rs. 1.884 billion for the Ministry of Housing and Works for ongoing projects, and Rs. 536.1 million for the Ministry of Information and Broadcasting and Rs2.02 billion (approx. $7.2 million) for the Digital Economy Enhancement Project (DEEP) NADRA surrendered by the Ministry of Information Technology and Telecom for the year 2024-25 in favor of the Ministry of Interior.
The ECC also allocated Rs. 14 billion for loans under Tier 4 of the Prime Minister’s Youth Business and Agriculture Loan Scheme (PMYBALS), offering term loans with a 0% end-user rate on a first-loss basis.
In energy, the ECC approved a security package for the 7.07 MW Railii-II Hydro Power Project and authorized amendments to ensure compliance with NEPRA’s tariff determinations.
To promote sustainable pensions, the ECC approved the creation of a Pension Fund through a Non-Banking Finance Company (NBFC), with Rs. 30 million allocated as seed money and Rs. 1 million for incorporation expenses.
The committee also addressed cross-sector issues, approving a Rs. 21.25 million grant for repair and maintenance of Islamabad High Court buildings and reaffirming its decision on wheat subsidy quotas for the remaining fiscal year.
In closing remarks, Finance Minister Muhammad Aurangzeb highlighted the importance of transparent and efficient implementation of these decisions to tackle critical economic, agricultural, and energy challenges.
Federal ministers, senior government officials, and representatives from relevant ministries and divisions attended the meeting.
