Islamabad, Feb 21: In a major development, the Economic Coordination Committee (ECC) of the Cabinet, chaired by Finance Minister Senator Muhammad Aurangzeb, has granted income tax exemptions related to the ICC Champions Trophy 2025. The meeting, held in Islamabad, reviewed a summary from the Revenue Division and approved tax relief for the International Cricket Council (ICC) under the tournament’s hosting agreement.
According to the agreement between ICC and Pakistan, no taxes or deductions will be imposed on ICC revenues, its subsidiaries, associates, officials, and non-resident delegates. However, Pakistani entities, including the Pakistan Cricket Board (PCB), will still be subject to income tax on their earnings from the event. Notably, the exemption does not extend to Sales Tax and Federal Excise Duty (FED). The measure is not expected to result in any revenue loss, as it was a precondition for securing the hosting rights of the tournament.
Discussion on Export Ban and Energy Sector Decisions
The ECC also reviewed a proposal from the Ministry of National Food Security & Research concerning the lifting of the ban on the commercial export of sheep and goats to Kuwait. However, the decision was deferred for further examination and due diligence.
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Additionally, the committee approved a Technical Supplementary Grant (TSG) of Rs. 6.859 billion for the Ministry of Energy (Power Division) to support development expenditures in the 2024-25 financial year. This funding aims to enhance energy infrastructure and address sectoral challenges.
LNG Framework Agreement Extended for Three More Years
Another key decision made by the ECC was the extension of the Liquefied Natural Gas (LNG) Framework Agreement between Pakistan LNG Limited (PLL) and SOCAR Trading. Originally signed in 2023, the agreement allows PLL to procure one LNG cargo per month on a flexible basis without financial obligations or take-or-pay commitments. The three-year extension aligns with Pakistan’s strategy for cost-effective energy procurement based on seasonal demand fluctuations.
High-Level Participation in ECC Meeting
The meeting saw participation from several key government officials, including Petroleum Minister Musadik Masood Malik, Minister for Industries and Production Rana Tanveer Hussain, Chairman of the Federal Board of Revenue (FBR), Chairman of the Securities and Exchange Commission of Pakistan (SECP), federal secretaries, and senior representatives from relevant ministries and divisions.
These decisions reflect Pakistan’s commitment to facilitating international sporting events, boosting energy sector efficiency, and maintaining a balanced trade policy while safeguarding national interests.
