The Economic Coordination Committee (ECC) of the Cabinet approved a technical supplementary grant of Rs30 billion on Monday to partially settle Rs58.26 billion in outstanding claims from the previous fiscal year under the Telegraphic Transfer Charges Incentive Scheme. The meeting also saw the approval of a Rs9 billion nationwide electric vehicle subsidy program.
Chaired virtually by Finance Minister Senator Muhammad Aurangzeb, the session included Federal Minister for Power Sardar Awais Ahmed Khan Leghari, Minister for Petroleum Ali Pervaiz Malik, Minister for National Food Security and Research Rana Tanveer Hussain, and senior officials from relevant ministries and departments.
The ECC approved a proposal from the Ministry of Industries and Production for a subsidy scheme aimed at accelerating the adoption of electric bikes, rickshaws, and loaders in Pakistan. A budgetary provision of Rs9 billion has already been allocated for FY2025-26 for this initiative.
Under the plan, 116,000 electric bikes and 3,170 electric rickshaws/loaders will be distributed in two phases. The first phase, set to be launched soon by the Prime Minister, will distribute 40,000 e-bikes and 1,000 e-rickshaws/loaders. The scheme also includes distributing free electric bikes to top-performing students in government colleges.
In addition, the ECC approved the Rs30 billion technical supplementary grant, as requested by the Finance Division, to settle the outstanding claims under the Telegraphic Transfer Charges Incentive Scheme. The Committee directed the Finance Division to coordinate with the State Bank of Pakistan (SBP) on payment arrangements for the grant.
The ECC also tasked the Finance Division with conducting a comprehensive review of the Pakistan Remittance Initiative, in collaboration with the SBP. This review will assess the program’s pros and cons, financial modalities, and opportunity costs. The initial analysis is due by the end of August, with final recommendations to be presented by mid-September.
