ECC approves new export incentives, Rs4 billion grant for IPP arbitration cases

The Economic Coordination Committee (ECC) of the Cabinet on Monday approved a series of measures aimed at boosting exports, supporting businesses and addressing key energy and financial matters during a meeting chaired by Federal Finance Minister Muhammad Aurangzeb.

According to a statement issued by the Ministry of Finance, the ECC approved a special export package designed to increase the country's exports. As part of the package, the committee approved three new export finance subsidy schemes to provide exporters with access to financing at concessional interest rates.

The ECC also approved special financing facilities for the small and medium enterprises (SME) sector to enhance its export potential. In addition, it endorsed a performance-based rebate scheme, under which incentives will be linked to additional export performance.

The committee directed the relevant authorities to submit a performance report on the newly approved export schemes after six months to assess their effectiveness.

In another major decision, the ECC approved a grant of Rs4 billion to meet expenses related to international arbitration cases involving Independent Power Producers (IPPs).

The committee also approved the payment of pensions to pensioners of closed gas companies through the respective power distribution companies (DISCOs).

Among energy-sector decisions, the ECC approved declaring the Pub Reservoir of Rehman-8 as a tight gas reservoir and also approved the tariff for the supply of locally produced gas to RLNG-based power plants.

The committee further approved the Employees' Old-Age Benefits Institution (EOBI) budget estimates for the fiscal year 2025-26, along with the institution's revised budget.

The decisions are aimed at promoting exports, strengthening industrial competitiveness, addressing energy-sector issues and ensuring financial support for key public institutions, according to the Ministry of Finance.