ECC approves Rs 1.2 trillion relief package to fight coronavirus
The ECC meeting was chaired by Advisor to Prime Minister on Finance and Revenue Abdul Hafeez Shaikh
ISLAMABAD (Dunya News) - The Prime Minister’s fiscal stimulus package has been approved by the ECC in today s meeting chaired by advisor to Prime Minister on Finance and Revenue Abdul Hafeez Shaikh. The economic package amounting to more than Rs 1.2 trillion has been approved in a bid to combat the coronavirus pandemic.
The ECC meeting approved Rs. 200 billion of cash assistance for the daily wagers working in the formal industrial sector and who had been laid off as a result of COVID-19 outbreak. It was estimated that around three million workers will fall in this category and they will have to be paid a minimum wage of Rs17500 per month. The estimated cost of this provision for daily wagers comes around to Rs 52.5 billion a month.
ECC approved the supplementary grant of Rs. 30 billion to Ministry of Commerce to payback duty drawbacks to textile exporters in the current financial year to improve their liquidity position when their businesses are experiencing a slow down due to worldwide outbreak of Corona epidemic. ECC was briefed SBP is working on payment of claims worth Rs. 49 billion out of which around 40 billion will be paid by June 2020.
Rs 100 billion for SMEs and agriculture sector and an amount of Rs 280 billion was approved for procurement of wheat at the state level. Moreover, Rs 70 billion for relief in prices of petroleum products has also been approved.
ECC also approved Rs 50 billion for Utility Stores Corporation to provide essential food items to the vulnerable section of the society at subsidized rates. USC has prepared an initial plan to deliver 9 essential food items @ Rs 3000 for a family of 2+4 people through Pakistan Post Foundation Logistics Division.
The special Package for providing relief to the poor through cash assistance under the Ehsaas Program was also approved by the ECC. The Rs100 billion package shall provide cash grants to 12 million families under the regular “kafalat program” and Emergency Cash Assistance on the recommendation of the district administration. The assistance will be provided for four months and besides the BISP beneficiaries it will be one time dispensation, the cash will be provided either in one installment of Rs 12000 through Kafalat partner banks.
A supplementary grant of Rs. 6 billion for Pakistan Railways to meet its expenses was also approved by ECC. Pakistan Railways has suspended its passenger train services around the country since 19-3-2020. The approved amount shall be utilized for paying salaries to 70,000 employees, repairs, paying for utilities and performing disinfectant sprays on platforms and inside trains for proving safe journey to the passengers.
Moreover, Rs 110 billion will be provided for relief in electricity and gas bills, supplementary grant of Rs 100 billion for "Residual/Emergency Relief Fund" while release of Rs 25 billion has been approved for the National Disaster Management Authority (NDMA).
