ECC approves $25m for National Disaster Risk Management Fund

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet under the chairmanship of Finance Minister Ishaq Dar has approved allocation of $25 million for National Disaster Risk Management Fund (NDRMF) and to exempt withholding tax on dividends to the Transmission Line project in accordance with the recommendation tabled by regulator Nepra.

The transmission line projects are part of $46 billion China Pakistan Economic Corridor (CPEC) and the government is committed to provide tax exemptions for luring Chinese companies especially belonging to public sector for making investments inside the country. Under CPEC, Pakistan has been undertaking $34 billion projects including transmission line projects which will enable the government to overcome torturous loadshedding by late 2017 or early 2018.

Finance Minister Senator Mohammad Ishaq Dar chaired a meeting of the ECC here on Wednesday in which important decisions were made related to different sectors of the economy.

According to official announcement made by the Finance Division, in consideration of a proposal by Economic Affairs Division (EAD) the ECC approved allocation of funds (equivalent to USD 25 million) for National Disaster Risk Management Fund (NDRMF). EAD, it may be mentioned, has set up the fund which aims to have a government-owned sustainable mechanism to support disaster risk financing instruments that can enhance country’s resilience to natural calamities.

The Asian Development Bank (ADB) has shown an indicative assistance of $1.2 billion as loan for this fund. The EAD and ADB signed the loan agreement for $200 million on 2nd December 2016 as first tranche against the total amount. The Fund will enable the government to immediatelyand effectively respond to natural calamities. The ECC also considered and approved Nepra’s proposal to allow exemption from withholding tax on dividends to the Transmission Line Projects under Transmission Policy 2015. The ECC also accorded approval for grant of Rs12 million as equity share of GoP to clear liabilities and financial obligations so as to facilitate process of winding up of Pakistan Textile City Ltd. The chairman ECC Ishaq Dar also directed formation of a committee comprising SAPM on Law, representatives from NBP, SECP and the CEO of PTCL to oversee smooth finalisation of the company’s winding up process as early as possible.