Federal Minister for Finance and Revenue Ishaq Dar chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet on Monday, where participants approved the Finance Division’s proposal of changes in the contours of six incentives schemes of State Bank of Pakistan to improve the inflow of remittances and to get optimal remittance inflow through formal channels.
The meeting was told that the government has been operating six incentive schemes through SBP in order to attract home remittances and increase inflows.
As per the Finance Division’s proposal, SBP wanted the existing reimbursement rate under TT charges to be increased to 30 SAR/100 US$ transactions, and the rate of performance-based cash incentive to Fls may be revised to Rs. 1 incremental US$ for up to 5 percent YoY growth, Rs. 2 incremental $ for over 5 percent YoY growth and Rs. 3 incremental $ for over 15 percent YoY growth.
The central bank had further proposed the induction of the PayPak Card in the Sohni Dharti Remittance Program, as well as to be given the authority to determine the minimum surrendering requirement for Exchange Companies to surrender FX in the Interbank Market scheme.
SBP recommended a new Lucky Draw Scheme and to discontinue the M Wallet Scheme. The ECC considered and approved the proposal to make changes as mentioned above.
Meanwhile, the ECC considered and noted the comprehensive report on damaged wheat of PASSCO due to rainfall and floods in 2022 presented by the Ministry of National Food Security & Research.
ECC also considered a summary of the Ministry of Energy (Power Division) regarding a contract with TAVNIR Iran for the purchase of 104MW of electricity. The ECC approved the amendments in the contract with TAVANIR related to the extension of the Tariff for the existing supply of 104MW (Jackigur-Mand) from 1st January 2022 to 31st December 2024, negotiating tariff for additional supply (Polan-Gabd) and tariff agreed for additional supply of 100MW through Polan-Gabd Transmission Line from 16th March 2023 to 31st December 2024.
The ECC also considered and approved another summary of the Power Division regarding the application of uniform tariffs for KE consumers by way of tariff rationalization. The ECC approved tariff rationalization for K-Electric by way of adjustments that shall be applicable on the consumption of April, May, and June 2023 to be recovered from consumers in three months (July, August, and September 2023), respectively.
The ECC also considered and approved the summary of the Ministry of Energy regarding proposed amendments in Transmission Line Policy 2015 (the TL Policy 2015) for the inclusion of ancillary services projects in its scope.
The summary of the Ministry of Industries and Production regarding the continuation of the Prime Minister’s Relief Package of five essential items on subsidized rates through Utility Stores Corporation (USC) for FY 2023-24 for 10 months from 1st August 2023 to 30th June 2024 (excluding the month of Ramzan) was approved with the direction that there should be no increase in the price of Atta.
The ECC also considered and approved the following Technical Supplementary Grants:
Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Khurram Dastgir Khan, Federal Minister for Information and Broadcasting Maryam Aurangzeb, Federal Minister for Industries and Production Makhdoom Syed Murtaza Mehmood, Minister of State for Petroleum Musadik Masood Malik, SAPM on Finance Tariq Bajwa, SAPM on Revenue Tariq Mehmood Pasha, Coordinator to PM on Commerce & Industry Rana Ihsan Afzal, Federal Secretaries and other senior officers attended the meeting.
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