ECC Meeting Presided Over by Finance Minister: Subsidy Approved for Urea Fertilizer Import,
Rs. 14 Billion Grant for Solarizing Agricultural Tubewells
Aurangzeb pointed out that while the prices of chicken, lentils, and chickpeas have decreased globally, their prices have risen in Pakistan, and this issue needs to be addressed.
ISLAMABAD ( WEB NEWS )
The Ministry of Finance, under the chairmanship of Finance Minister Mohammad Aurangzeb, has approved a subsidy for the import of urea fertilizer during a meeting of the Economic Coordination Committee (ECC). According to the statement, the subsidy for urea fertilizer imports will be shared equally between the federal and provincial governments, with each contributing 50%. During the meeting, approval was granted for the release of Rs. 10 billion for the subsidy and a guarantee of Rs. 1 billion for Pakistan Skills Bonds. A supplementary grant of Rs. 1.8 billion was also approved for a housing ministry project.
The statement further mentioned that the approval was given for the Siah Copper Project in Chagai district, Balochistan. An amount of Rs. 536.1 million was sanctioned for the Ministry of Information’s project. A supplementary grant of over Rs. 2 billion was approved for boosting the digital economy. Additionally, Rs. 10.8 million were approved for claims payments under the Prime Minister’s Fiscal Package for Agriculture. The ECC also approved the reorganization of the Federal Board of Revenue (FBR) sector, with a grant of Rs. 3.7 billion for its restructuring.
Furthermore, a grant of Rs. 523 million was approved for the Small and Medium Enterprises Development Authority (SMEDA), and a grant of Rs. 14 billion was approved for the solarization of agricultural tubewells in the country.
Earlier, addressing the meeting, Mohammad Aurangzeb stated that remittances this year are expected to exceed $35 billion, and the country continues to make progress in the economic field. He emphasized that inflation has dropped to its lowest level in 6.5 years, and as a result, the State Bank has reduced the interest rate for the fifth consecutive time to 13%.
He further mentioned that remittances have increased by 35% year-on-year, and the Governor of the State Bank has expressed hope that the country will surpass the $35 billion remittance mark this year. He noted that exports have risen, improving the country’s foreign exchange reserves, which had previously been equivalent to only two weeks of imports but now cover three months of imports.
The Federal Finance Minister also highlighted that the current account deficit is at its highest surplus level in 10 years. He mentioned that meetings were held last week with industrial partners, overseas chambers, and members of the Pakistan Business Council. The reduction in the interest rate from 22% to 13% has nearly halved the cost of business loans.
Aurangzeb pointed out that while the prices of chicken, lentils, and chickpeas have decreased globally, their prices have risen in Pakistan, and this issue needs to be addressed. He added that the Business Confidence Index is moving in a positive direction, with growth in sectors such as cement, fertilizers, petroleum, and others. There has also been a significant increase in IT and textile exports.
The Finance Minister concluded by stating that the ECC would discuss all agenda items in the meeting and share promising economic figures with the nation.