In a rare move, the initial segment of the Economic Coordination Committee (ECC) meeting was broadcast live, where Finance Minister Muhammad Aurangzeb highlighted key accomplishments. He cited a $944 million current account surplus in the first five months, a 35% rise in remittances, 33% growth in technology exports, and a 31% increase in Roshan Digital Account deposits.
The minister also noted a 900-basis point drop in the policy rate to 13%, fostering business confidence. He stated that foreign exchange reserves held by the State Bank of Pakistan had grown to cover 2.6 months of imports compared to just 14 days over a year ago, with a projection to exceed 12 weeks by FY25. Inflation in November, measured at 4.9%, was the lowest in six and a half years.
Aurangzeb acknowledged concerns about middlemen profiting from arbitrage but reported a recent decline in prices for key commodities such as poultry, daal mash, and channa. He also pointed to a recovery in business confidence, evident in 5% growth in cement sales, 6% fertilizer offtake, a 58% surge in automobile sales, and a 15% increase in petroleum product sales.
Approved Allocations
- Advertising and Publicity: Rs536.1 million for the Ministry of Information and Broadcasting.
- Agricultural Subsidies: Rs10 billion to settle urea subsidies, with provincial governments directed to share 50% of the cost.
- Housing Projects: Rs1.884 billion for ongoing projects under the Ministry of Housing and Works.
- Investment Facilitation: Rs523.078 million for the Special Investment Facilitation Council (SIFC).
- Mineral Exports: Approval for the Siah Dik Copper Project in Balochistan and the designation of Saindak EPZ as a Private Export Processing Zone.
- Digital Economy: Rs2.023 billion for the Digital Economy Enhancement Project (DEEP).
- Judiciary Maintenance: Rs21 million for Islamabad High Court repairs.
- Agriculture Fiscal Support: Rs1.086 billion for Zarai Tarqiati Bank Ltd under the PM’s fiscal package.
- Loan Guarantees: Rs10 billion for loans linked to water infrastructure projects funded by international banks.
Additional Decisions
- Inclusion of a new Tier-4 category in the Prime Minister’s Youth Business and Agriculture Loan Scheme, offering zero-interest term loans under a budget allocation of Rs8.6 billion.
- Creation of a Pension Fund through an NBFC with Rs30 million seed funding and Rs1 million for setup costs.
- Approval of security and contractual documents for the 7.07 MW Raili-II Hydro Power Project under the Power Generation Policy 2015.
- Transfer of Rs14 billion to the Power Division to enhance energy efficiency in the agricultural sector through solarized tubewells.
These measures underscore the government’s focus on addressing key economic and social priorities while showcasing its policy achievements.
