ISLAMABAD: The Economic Coordination Committee (ECC) has accorded approval for release of Rs 20 billion to Green Corporate Initiative (Pvt.) Limited during the current fiscal year, well informed sources in Finance Division told Business Recorder.
On November 10, 2023, Defence Division briefed the ECC of the Cabinet that the Government of Punjab and Green Corporate Initiative (Private) Limited had entered into an agreement under which Government of Punjab would provide an interest-free loan of Rs.100 billion to Green Corporate Initiative (Pvt.) Limited during CFY.
On October 24, 2023 Government of Punjab had requested State Bank of Pakistan (SBP) to debit Punjab Government’s Account No-1 (non-food) with a sum of Rs.20.00 billion and credit Federal Government’s Account No-1 (non-food) as loan through Technical Supplementary Grant (TSG) for onward disbursement to Green Corporate Initiative (Pvt.) Limited for Green Pakistan Initiative.
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Finance Division had agreed to transfer Rs. 20 billion received in the Federal Consolidated Fund Account No. 1 (Non-Food) from the Government of Punjab to Defence Division as Technical Supplementary Grant.
Defence Division requested the ECC to approve disbursement of Rs 20 billion through Technical Supplementary Grant Contra credit to the Federal Government Account No-1(non-food) for further disbursement to Green Corporate Imitative(Pvt.) Limited for Green Pakistan Initiative during CFY.
During ensuing discussion, it was observed that agriculture was a provincial subject and an agreement was executed between Government of Punjab and Green Corporate Initiative (Private) Limited related to Agriculture; therefore, Federal Government should not involve itself therein.
It was suggested that the instant case may be approved as one time case; however, in future such type of matters should be dealt with by the respective province at its own level without involving Federal Government therein.
After discussion on the summary submitted by Defence Division for release of funds to Green Corporate Initiative (Pvt.) Limited during the year 2023-24 for Green Pakistan Initiative the proposal was approved with the stipulation that in future such type of matter shall be dealt with by the respective province at its own level without involving Federal Government therein.
Copyright Business Recorder, 2023