ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet, chaired by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, at the Finance Division to address several vital economic issues.
Key ministers in attendance included Abdul Aleem Khan, Minister for Privatization; Mussadiq Masood Malik, Minister for Petroleum; Sardar Awais Khan Leghari, Minister for Power; and Ali Parvez Malik, Minister of State for Finance & Revenue, along with senior officials from relevant ministries.
A primary focus of the meeting was the Ministry of Communications’ summary concerning the “Execution of Framework Agreement between China and Pakistan on the Realignment of the Karakoram Highway (KKH) from Thakot to Raikot under the China-Pakistan Economic Corridor (CPEC).”
After detailed discussions, the ECC granted approval for the Ministry of Communications and the National Highway Authority (NHA) to proceed with the provisions outlined in the Framework Agreement. This project involves the realignment of the 241-kilometer Thakot-Raikot section as part of Phase II of CPEC. The approval was given in accordance with Rule-5 of the Public Procurement Rules, 2004, ensuring compliance with necessary procedural requirements.
Additionally, the ECC reviewed another proposal from the Ministry of Communications regarding the “Chakdara-Timergara, 39 Km Road Project (N-45).” It was noted that Rule-5 of the Public Procurement Rules, 2004, could be invoked following ECC’s approval and after consultations with relevant stakeholders. The committee, therefore, authorized the Ministry of Communications and the NHA to proceed with procuring consultancy services for Section-1 of the Chakdara-Chitral Road Project.
In a significant decision, the ECC also approved revisions to the Home Remittances Incentive Schemes proposed by the State Bank of Pakistan (SBP). These revisions include modifications to the Reimbursement of Telegraphic Transfer (TT) Charges Scheme and the Incentive Scheme for Exchange Companies (ECS).
Under the revised scheme, the flat reimbursement rate of SAR 30 per eligible transaction will now be split into fixed and variable components. The variable component will be tied to incremental growth in remittances, allowing banks to earn higher rewards based on their performance.
Similarly, the ECS incentive scheme will see an increase in the base rate for the fixed component from PKR 1 to PKR 2 per USD surrendered, with the variable component also linked to remittance growth.
The ECC expects that these revisions will further motivate banks and exchange companies to enhance remittance inflows, thereby strengthening the country’s foreign exchange reserves
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