ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet (ECC) has approved Rs48.7 billion subsidy for the agriculture sector and housing finance with disbursement of over Rs18 billion in the current fiscal year.
The ECC meeting presided over by Adviser to the Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh on Wednesday allocated Rs33 billion mark-up subsidy for housing finance for the loan tenor of 10 years with Rs4.77 billion to be allocated in the current financial year for the payment of mark-up this year, and approved allocation of Rs15.7 billion for agriculture mark-up etc.
The ECC also decided to allocate 150,000 metric tons of wheat to the Pakistan Army from the PASSCO on payment basis for the year 2020-2021, with an official stating that the wheat price would also include incidental and transportation charges.
On a proposal of the Naya Pakistan Housing and Development Authority, the ECC also approved "mark-up subsidy for housing finance" as the prime minister has on July 10, 2020, announced special incentives for housing and construction sectors to revive economic development amid the Covid-19 pandemic.
Subsidy on account of markup would be provided for 10 years on bank financing with five percent markup rate on housing units measuring up to five marla for first five years and seven percent for the next five.
For housing units measuring 10 marla, markup rate for end user will be seven percent for first five years and nine percent for the next five years.
Subsidy would be given on units, where the price of the housing unit does not exceed Rs3.5 million for 3-5 marla and is not more than Rs6 million in case of 10 marla house, the meeting was further informed.
An amount of Rs33 billion was allocated for the loan tenor of 10 years with Rs4.77 billion to be allocated in the current financial year for the payment of markup this year.
On a proposal of the Ministry of National Food Security and Research, for utilisation of Rs100 billion allocated for the agriculture and the SME sector under the prime minister Rs1,200 billion package for the Covid-19, the ECC approved allocation of Rs15.7 billion, earmarked for nitrogenous fertilisers, to be diverted to phosphate and potash fertilisers.
The meeting also decided to immediately release and disburse the subsidy on whitefly pesticides.
Rs1.5 billion subsidy for tractors and markup of Rs6.8 billion on all loans for 12.5 acres of land holdings disbursed by the Zarai Taraqiati Bank Limited (ZTBL) with passbook as collateral for fiscal year 2020-2021 only (to be adjusted through book and tax adjustment of the State Bank of Pakistan (SBP) and the Federal Board of Revenue (FBR) respectively), were also approved.
The ECC directed the Ministry of National Food Security and Research to properly monitor and evaluate the mechanism of disbursement of various subsidies for maintaining transparency of the system and to ensure that benefit reaches the small farmers.
The ECC also approved an allocation of Rs41.8 million for the Ministry of Information Technology and Telecommunication/NITB for deployment of systems, data analysis, modeling and mobile apps for the NCOC stakeholders and government departments with the instructions that wherever possible the budget may be rationalized/minimized with the consultation of the Finance Division.
The meeting also approved the establishment of Balochistan Mineral Exploration Company Limited with the support of the federal government, which would be a joint venture of the government of Pakistan with the government of Balochistan for formation and operations of the BMEC with 10 percent shareholding amounting to Rs320 million to be injected in two equal tranches through the Pakistan Mineral Development Corporation (PMDC).
The Petroleum Division and the PMDC are authorised to execute the shareholders' agreement and complete all required legal, regulatory and corporate formalities in connection with formation, incorporation and equity participation in the BMEC.
The ECC also approved the prices of tobacco recommended by the Price and Grade Revision Committee in pursuance of Section 8(1) of the PTB Ordinance, 1968.
The ECC also directed that the MNFSR shall also give a detailed presentation on the mechanism of determination of prices and will also point out the gaps in the system.
Copyright Business Recorder, 2020
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