Staff Reporter
Islamabad
Adviser to Prime Minister on Finance and Revenue Abdul Hafeez Shaikh on Wednesday chaired a meeting of Economic Coordination Committee (ECC).
The meeting mulled over a 12-point agenda and approved the electric vehicle policy. The policy deals with the two-wheeler and three-wheeler vehicles and is aimed at lowering tariffs and taxes.
A policy for four-wheeler vehicles would be approved in the next meeting. It also approved supplementary grants for various federal departments, which would be tabled alongside the budget 2020-21 for approval in the Parliament.
It included a supplementary grant of Rs 7.24 billion for health ministry while Rs funds of upto Rs 3.82 billion were approved to overcome shortfall in foreign ministry.
It is pertinent to mention here that during the last ECC meeting on June 03, it approved 12 supplementary grants to different government departments.
ECC after reviewing the situation of Urea availability in the country and for making available for the upcoming sowing season, a committee was formed under the chairmanship of the Minister for Industries with representatives from National Food Security, Petroleum and Finance Division to review and recommend the appropriate Variable Contribution Margin.
On the earlier instructions of the ECC for the presentation of a report on wheat procurement by Provinces and PASSCO, ECC was briefed that so far PASSCO and Provincial Food Departments have procured a quantity of 6.5 million tons or 80% out of the assigned target of 8.25 million tons.
PASSCO and KP government shall continue procurement till end June 2020. On the recommendation of the Ministry of National Food Security and Research, ECC directed that Provincial Food Departments of KP and Balochistan to achieve their procurement targets as early as possible and Law Enforcement Agencies of the provinces to be sensitive against hoarding and keeping a vigilant check on price hike of flour and wheat.
In order to provide relief to small and medium enterprises during the ongoing pandemic situation, ECC approved the change in key terms of the Kamyab Jawan Program. Now instead of two tiers (100,000 to 0.5 mill and 0.5 million to 5 million) there will be three tiers of the loans; Rs. 100,000 to 1 million, Rs 1 million to 10 million, Rs 10 million to 25 million.
Tier 1 loans shall be on the personal guarantee of the borrower whereas T2 and T3 loans shall be as per bank’s own credit policy. Government shall bear credit losses for principal portion only on the disbursed portfolios of the banks for T1 up to 50%. T2 up to20%, T3 up to 10% and the executing agencies shall be all commercial banks. Loan pricing was also changed for all three tiers (3%,4%, 5% respectively, bank pricing shall be KIBOR+400 BPS for all three tiers).
