ECC approves SBP framework for Risk Coverage Schemes for small firms, farmers

The Economic Coordination Committee of the Cabinet signed off on a bundle of fiscal and policy steps, among them technical supplementary grants exceeding Rs39 billion, according to Mettis Global. The meeting chaired by Senator Muhammad Aurangzeb, the federal finance and revenue minister, reviewed 17 agenda items from various ministries and divisions.

A financing framework drawn up by the State Bank of Pakistan was endorsed, bringing Agency Financial Institutions into the government's risk coverage programmes for small businesses and farmers, with support channelled through wholesale and agency routes. The approach uses the reach of qualifying microfinance and non-banking financial institutions to broaden access to finance. Separately, an addendum to the Credit Guarantee Trust Fund's second supplemental trust deed was cleared to ease use of the credit guarantee facility earmarked for affordable housing finance.

Grants include Rs2 billion for SMEDA's business plan, Rs11.329 billion for the Utility Stores Corporation to complete its closure, Rs8 billion for the Public Private Partnership Authority and Rs10 billion for the Thar Coal Rail Connectivity Project. The committee also cleared base prices for the 2026 tobacco harvest and revised cess rates for 2026-27, while a proposal on PASSCO receivables was deferred. An amendment to the additional customs duty on locally made tyres was also approved, while Rs4 billion went to Pakistan Revenue Automation to support the FBR's Transformation Plan.