Economic Coordination Committee raises duty on tyre, bike parts import

Dawn reported that the government on Thursday lifted additional customs duty on tyre and motorcycle part imports to support domestic producers. The decision came from a cabinet-level Economic Coordination Committee meeting led by Finance Minister Muhammad Aurangzeb. The levy on radial tyres and locally made motorcycle parts moved from 4pc to 11pc, while duty on motorbike parts brought in by local manufacturers rose from 11pc to 31pc.

The committee also cleared first-loss coverage for small and medium enterprises and small farmers under a State Bank framework that works through microfinance and non-bank lenders. The cover is 20pc for SME lending, while small farmers and medium industries each get 10pc. It also approved placing Export Development Fund money into government papers, and an addendum to the credit guarantee trust deed that broadens a facility first meant for the Mera Pakistan Mera Ghar scheme.

Separately, the meeting cleared 11 supplementary grants totalling Rs57.85 billion, taken at the end of the first fiscal quarter and one day after the IMF reached a staff-level understanding. Rs2 billion goes to the SME Development Authority for its business plan, while Rs11.329 billion covers urgent funding for the Utility Stores Corporation as its closure is completed. Other allocations include Rs8 billion for P3A, which backs public-private infrastructure, and Rs10 billion is directed to the Ministry of Railways to fund the Thar Coal Rail Connectivity Project.