Finance Minister Miftah Ismail presides over a meeting of the Economic Coordination Committee on Aug. 30. Photo courtesy PID
Pakistan’s Economic Coordination Committee (ECC) on Tuesday approved a technical supplementary grant of Rs. 103.125 billion to facilitate the disbursal of cash handouts through the Benazir Income Support Program to flood-hit families.
Prime Minister Shehbaz Sharif last week announced financial assistance of Rs. 25,000 to all families impacted by the floods. The ECC meeting, chaired by Finance Minister Miftah Ismail, reviewed a summary on the emergency cash relief submitted by the Ministry of Poverty Alleviation and Social Safety and approved it, noting the BISP was also set to release its regular quarterly tranche in the first week of September and needed the funds to be expedited to prevent its operations from being impacted.
According to a statement, the Finance Division would consult with the BISP to discuss the financial implications and required modalities, adding the Rs. 25,000 would be disbursed to all households with poverty score up to 32. It said the federal government would also ask the provinces to provide their share in the relief for flood victims.
The ECC meeting also deliberated on a summary presented by the Ministry of National Food, Security and Research on fixing the strategic reserves of wheat at 2 million tons, earlier set at 1 million tons, noting a potential food shortage after this year’s floods and the risk of hoarding and smuggling necessitated a substantial quantity of the essential commodity be retained in reserve. In light of this, the ECC approved the revision of ECC decision for import of 3 million tons of milling wheat. It also directed the Trading Corporation of Pakistan to arrange an additional 0.8 million tons of wheat through government-to-government deals or open tender. According to the statement, the private sector would be allowed to import 0.8 million tons of wheat, but would not be provided any subsidy.
Meanwhile, the Economic Affairs Ministry presented a summary on G-20 Debt Service Suspension Initiative, which was announced in April 2020 for International Development Association eligible countries to mitigate the socio-economic impact of COVID-19. It said six agreements for the debt rescheduling had been inked with Italy, Japan and Spain, with the ECC agreeing to reschedule the agreement proposed by the ministry.
The National FATF Coordination Committee on AML/CFT presented a summary for approval of expenditures related to the on-site visit of FATF/APG assessors’ team. It said the FATF team, comprising 15 members, would visit from Aug 29-Sept. 2 to verify Pakistan’s work in combating money laundering. The ECC approved a summary for allocation of Rs. 7 million for this purpose.
The Communications Ministry, meanwhile, submitted a summary for an extension to complete the business plan of the National Highways Authority from June 30 to Sept. 30. Approving the summary, the ECC stressed no further extension would be given, adding the Finance Division would deduct interest on Cash Development Loans if any additional extension was sought.