ECC approves Rs5.8 billion relief package for monsoon flood victims

The Economic Coordination Committee (ECC) of the Cabinet approved a Rs5.8 billion relief package on Tuesday to assist victims of the recent monsoon rains. 

The decision was made in a meeting chaired by Federal Finance Minister Muhammad Aurangzeb, with instructions for the Finance Division to immediately release Rs4 billion to alleviate the hardships of those affected.

The package follows a proposal submitted by the National Disaster Management Authority (NDMA), which was approved by the ECC to provide federal assistance for flood-affected areas.

The committee also reviewed a summary submitted by the Ministry of Maritime Affairs regarding the arrest of Pakistan National Shipping Corporation (PNSC) ships in South Africa due to claims by M/s Coniston against Pakistan Steel Mills Ltd. 

After discussions, the ECC directed the Finance Division to reimburse PNSC Rs330.526 million through a technical supplementary grant (TSG), in line with an earlier decision made in 2017. The Ministry of Industries and Production was instructed to expedite the resolution of the arbitration case and report progress within three months.

In other decisions, the ECC approved a proposal from the Power Division to standardise fuel charge adjustments across the country. It also approved a term sheet for the launch of the Prime Minister’s Fan Replacement Programme, with Rs2 billion allocated to the National Energy Efficiency and Conservation Authority (NEECA) to kick-start the program. 

Additionally, Rs250 million was approved for the National Security Division’s Strategic Policy Planning Cell, with further amounts to be released based on expenditure reviews.

The ECC also approved a Rs3.5 billion TSG for the Finance Division to support the RAAST QR Code-based person-to-merchant payment subsidy scheme. The scheme aims to promote digital payments and the digital economy, with plans for continuation over three years. The State Bank of Pakistan will notify the scheme and provide a report on its effectiveness by the end of the fiscal year.

Lastly, the ECC approved the New Energy Vehicle Policy 2025-30, which aims to transition Pakistan towards electric vehicles, aligning with international best practices. The committee was also briefed on a risk coverage scheme for small farmers and underserved areas, aimed at providing agricultural credit to regions with low financial inclusion.