The Economic Coordination Committee (ECC) of the Cabinet on Friday decided to phase out the State Bank of Pakistan’s (SBP) long-term financing facility (LTFF) to Exim Bank.
As per a statement released by the Finance Division, the decision was made during a meeting held today under the chairmanship of Finance Minister Muhammad Aurangzeb.
During the meeting, the ECC discussed a summary presented by the Finance Division regarding the phasing out of the SBP’s LTFF to Exim Bank.
“The ECC decided that the SBP’s LTFF portfolio of Rs330 billion would be phased out to the Exim Bank, with an allocation of Rs1.001 billion through a Technical Supplementary Grant (TSG) to meet the LTFF subsidy requirement for the new portfolio for FY 2025.”
The move indicates the gradual shifting of export-related financing from the SBP to Exim Bank.
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Meanwhile, the ECC considered and approved a summary from the Ministry of Information and Broadcasting, seeking a TSG of Rs2 billion from its allocated budget of Rs5.6 billion.
As per the statement, the approved grant will be used to meet the liabilities of payments for outstanding advertisement dues owed to media houses.
The ECC further approved a proposal from the Ministry of Defence for a TSG amounting to Rs430 million for the execution of SAP schemes in Punjab during the current financial year.
The committee also approved the allocation of Rs250 million as government-paid-up capital for the operations of the Jinnah Medical Complex & Research Centre (JMC&RC) Company.
“This allocation will support the establishment of a state-of-the-art, 1,000-bed academic medical centre in Islamabad. However, the ECC directed the JMC&RC Company to provide a detailed breakdown of the expenditures and activities to be covered by the approved Rs250 million before seeking further allocations,” read the statement.
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Finally, the ECC approved a summary from the Finance Division for a TSG of Rs24.556 million (equivalent to $87,671.21 at an exchange rate of Rs280.1/USD) to Mrs. Lia Bomba of JAED Textile Pvt Ltd, Sydney, Australia, in compliance with the specific instructions of the Supreme Court of Pakistan dated 19th March 2025.
The meeting was attended by the Minister for Power, Sardar Awais Ahmed Khan Leghari, the Minister for Petroleum, Ali Parvez Malik, Federal Minister for Board of Investment, Qaiser Ahmed Sheikh, along with the Chairman of SECP, federal secretaries, and senior officials from relevant ministries and divisions.
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