The Economic Coordination Committee (ECC) has decided to transfer the State Bank of Pakistan’s (SBP) Rs330 billion Long-Term Financing Facility (LTFF) to the Exim Bank of Pakistan. Finance Minister Muhammad Aurangzeb chaired the meeting on Friday, where officials finalized the decision.
LTFF Transition Plan
According to the Finance Division, the government will phase out the LTFF and shift it to Exim Bank. To support this transition, the ECC approved Rs1.001 billion through a Technical Supplementary Grant (TSG) for the LTFF subsidy in the fiscal year 2025. This move aims to strengthen Exim Bank’s role in export financing while reducing SBP’s direct involvement.
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Other Key ECC Decisions
Limited Export of Potassium Sulphate Fertilizer
The ECC approved a proposal to allow limited exports of potassium sulphate fertilizer from the Gwadar Free Zone. The decision aims to boost trade while ensuring domestic supply remains stable.
Clearance of Media Advertisement Dues
The committee granted Rs2 billion from the Ministry of Information and Broadcasting’s allocated budget of Rs5.6 billion. The funds will clear outstanding payments owed to media houses.
Funds for Defence and Healthcare
The ECC approved Rs430 million for Special Assistance Programs (SAP) in Punjab. The Jinnah Medical Complex & Research Centre (JMC&RC) also received Rs250 million as paid-up capital to support the development of a 1,000-bed academic medical center in Islamabad. However, the ECC directed JMC&RC to provide a detailed expense breakdown before requesting more funds.
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Compliance with Supreme Court Order
The committee approved Rs24.556 million (approximately $87,671.21 at an exchange rate of Rs280.1/USD) for Mrs. Lia Bomba of JAED Textile Pvt Ltd, Sydney, Australia. This payment follows a Supreme Court directive issued on March 19, 2025.
Meeting Attendees
The meeting included Minister for Power Sardar Awais Ahmed Khan Leghari, Minister for Petroleum Ali Parvez Malik, and Federal Minister for Board of Investment Qaiser Ahmed Sheikh. The Chairman of SECP, federal secretaries, and senior officials from various ministries also participated.
The ECC’s decisions reflect the government’s ongoing efforts to enhance financial policies, streamline export financing, and allocate resources efficiently.
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