The Economic Coordination Committee (ECC) of the Cabinet, chaired by Finance Minister Muhammad Aurangzeb, approved several key economic measures in its recent meeting. The session, attended by federal ministers and senior officials, cleared an EV subsidy scheme, a technical supplementary grant (TSG) for remittance reimbursements, and financial support for Quaid-e-Azam University (QAU).
The ECC approved a summary from the Ministry of Industries and Production to launch a subsidy program for electric bikes and rickshaws/loaders. The government has already allocated Rs9 billion in the FY2025-26 budget for this initiative.
Under this scheme, authorities plan to introduce 116,000 electric bikes and 3,170 electric rickshaws/loaders in two phases. The first phase will roll out 40,000 electric bikes and 1,000 electric rickshaws/loaders. Additionally, top-performing students in government colleges will receive free electric bikes.
Rs30 Billion TSG Approved for Remittance Claims
The ECC also approved a Rs30 billion TSG to clear pending reimbursement claims under the Telegraphic Transfer Charges Incentive Scheme. These claims, totaling Rs58.26 billion, remained unsettled from the previous fiscal year.
The Finance Division will coordinate with the State Bank of Pakistan (SBP) to finalize payment procedures. Furthermore, the ECC directed the Finance Division to assess the Pakistan Remittance Initiative, covering financial impact, pros and cons, and alternative options. A detailed report, incorporating stakeholder feedback, is due by mid-September.
In another decision, the ECC approved a Rs2 billion bailout grant for Quaid-e-Azam University. However, this approval requires the university to present a comprehensive financial self-sustainability plan. QAU, along with the Higher Education Commission (HEC), must outline clear strategies to achieve long-term financial stability and reduce reliance on future bailouts.