Islamabad: Adviser to Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh chaired the meeting of the Economic Coordination Committee of the Cabinet (ECC) on Wednesday at the Prime Minister office.
ECC decided to allocate 150,000 tons of wheat from PASSCO resources to the Pakistan Army between 2020 and 2021, and the wheat will be distributed according to the payment. ECC also approved the tobacco price recommended by the Price and Grade Revision Committee in accordance with Article 8(1) of the PTB Regulations of 1968.
The ECC also instructed the MNFSR to also detail the mechanism for determining prices and point out gaps in the system. The ECC also approved the Naya Pakistan Housing and Development Authority (NPHDA) proposed “Housing Financing Price Subsidy”.
Prime Minister Imran Khan has announced special incentives for the housing and construction industry on July 10, 2020 to restore economic development during the Covid-19 pandemic. For bank financing, a 10-year markup subsidy should be provided. Therefore, the end-user price increase rate for housing units not exceeding 5 horses will be 5% in the first five years and 7% in the next five years.
For a housing unit measuring 10 marla, the end-user markup rate will be 7% in the first five years and 9% in the next five years. Subsidies will be given to units with a housing price of 3-5 Marla not exceeding 3.5 million rupees and Marla 10 housing not exceeding 6 million rupees. Rs 33 billion was allocated for the ten-year loan term of Rs. This fiscal year will allocate $4.77 billion for this year’s price increase.
The ECC also approved allocation of Rs. 41.8 million for Ministry of Information Technology and Telecommunication/ NITB for deployment of systems, data analysis, modeling and mobile apps for NCOC stakeholders and Government Departments with the instructions that wherever possible the budget may be rationalized/ minimized with the consultation of Finance Division.
The ECC also approved the Establishment of Balochistan Mineral Exploration Company Limited with the support of the Federal Government. It will be joint venture of GoP with the Government of Balochistan for formation and operations of BMEC with 10% shareholding amounting to Rs320 million to be injected in two equal tranches through Pakistan Mineral Development Corporation.
The Petroleum Division and PMDC are authorized to execute the shareholders agreement and complete all required legal, regulatory and corporate formalities in connection with formation, incorporation and equity participation in BMEC. Ministry of National Food Security and Research brought a proposal to the ECC on (utilization) of the Fiscal package of Rs.100 billion allocated for the Agriculture and SME sector out of the 1200 billion fiscal package of the PM on Covid -19.
In accordance with the requirements of MNFSR, ECC approved a grant of Rs 15.7 billion for the conversion of nitrogen fertilizers to phosphate and potash fertilizers. It also decided to immediately release and pay for whitefly pesticide subsidies. Tractor subsidy is 1.5 billion rupees and the price is increased by rupees. ZTBL used the passbook as collateral to only disburse $6.8 billion of all loans for the ownership of 12.5 acres of land in the 2020-21 fiscal year (adjusted through the book and tax adjustments of SBP and FBR, respectively).
ECC instructs MNFSR to properly monitor and evaluate various subsidy payment mechanisms to maintain system transparency and ensure that the benefits benefit smallholder farmers.