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ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet on Monday approved more than Rs255 billion in subsidies under three separate incentive schemes to boost the country’s exports, which have remained struggling at $30bn per annum for years despite rising imports.
The meeting, presided over by Finance Minister Muhammad Aurangzeb, also approved a special domestic gas supply tariff of Rs2,000 per million British thermal units (mmBtu) for RLNG-based power plants, instead of over Rs3,500 per mmBtu RLNG imports price disrupted by the US-Iran war.
A summary for three dedicated export finance subsidy schemes for enhancing exports was moved by the finance ministry. These include an enhanced EXIM-administered Export Finance Scheme (E-EFS), the launch of a new Long-Term Export Growth Financing Facility (LTEGFF), and a performance-based rebate on incremental exports.
Under the E-EFS, the government will provide exporters with working capital loans for six months at an interest rate of 8.5 per cent and pick the remaining 5pc interest cost, involving a subsidy of Rs58bn to be paid from the federal budget during the current fiscal year.
