ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Friday accorded in-principle approval of risk coverage scheme for small farmers and under-served areas, which would ultimately bring 750,000 new agricultural borrowers into the formal financial system.
The ECC, which met under the chairmanship of Minister for Finance and Revenue, Senator Muhammad Aurangzeb considered a summary by the Finance Division for the launch of a risk coverage scheme for small farmers and under-served areas.
The Cabinet body accorded in-principle approval to the proposal with instructions for further fine-tuning and incorporating in it additional safeguards before its planned launch on 14th August 2025, said a press release issued by the Ministry of Finance.
The Cabinet body was told that the scheme would likely bring 750,000 new agricultural borrowers into the formal financial system and generate an incremental credit portfolio of Rs 300 billion during its disbursement tenure of 3 years from fiscal year 2026-28.
The budgetary requirement for meeting risk coverage and operational cost of the banks is estimated to be Rs 37.5 billion, spread over fiscal year 2027-31.
The ECC also reviewed and approved several Technical Supplementary Grants (TSGs) to meet the cost of ongoing projects and initiatives from different ministries and divisions during the current financial year 2024-25.
During the meeting, the ECC approved Rs 15.839 billion TSG for the Ministry of Defence to cover the shortfall in admissible pay and allowances, in employees-related and non-employees related expenditures and clear the outstanding dues as part of the PM’s Package for the martyrs of the recent Pakistan-India war.
Rs 63 million TSG for Finance Division to cover the shortfall under unavoidable and mandatory expenditures on account of rent for office and residential buildings of the Department of the Auditor General of Pakistan during the current FY2024-25.
The meeting approved Rs 829.67 billion TSG and Rs. 1,774.20 billion TSG for Finance Division for repayment of domestic debt and for foreign loan repayments respectively, Rs 100 million TSG for Ministry of Foreign Affairs to meet the expenditure under the Head of Account “Other Delegation Abroad” during the current fiscal year (2024-25).
Rs1.765 billion TSG for Ministry of Interior & Narcotics Control to meet the operational requirements as well as to clear the outstanding/pending liabilities of the Frontier Corps KP (North and South) and Frontier Corps Balochistan (North & South) during the current fiscal year were also approved.
The ECC approved Rs 300 million TSG for Ministry of Interior & Narcotics Control to clear outstanding liabilities under various Heads of Account of the ICT Police during the current and Rs 100 million TSG for Ministry of Interior & Narcotics Control to clear the outstanding liabilities of various vendors provided services and supplies during the law and order situations in the ICT region during the current fiscal year.
Rs52.241 million TSG for Ministry of Interior & Narcotics Control to meet the cost of up-gradation/uplifting and availability of latest investigation equipment and friendly environment at ICT Police stations during and Rs100 million TSG for Ministry of Interior & Narcotics Control in respect of Frontier Corps KP (North) during the current fiscal year were also approved.
The meeting approved Rs5.5 billion TSG for Strategic Plans Divisions as rupee cover to Pakistan Space & Upper Atmosphere Research Commission (SUPARCO) and Rs117.97 million TSG for Petroleum Division to meet the cost of PSDP project titled ‘Expansion & Up-gradation of Pakistan Petroleum Core-house during the current financial year.
