ECC defers approval of SMEs, auto policies to develop consensus

ISLAMABAD: Economic Coordination Committee (ECC) of the Cabinet on Friday deferred approval of Small & Medium Enterprises (SMEs) Policy 2021-25 to remove objections raised by stakeholders.

"The ECC discussed the summary on Small & Medium Enterprises (SMEs) Policy 2021-25 presented by ministry of Industries & Production and directed to review the policy and discuss the observations raised by the relevant stakeholders under the chairmanship of adviser to the PM on finance and revenue,” a statement issued after ECC meeting said.

“The proposal would be presented to the cabinet after developing a consensus of stakeholders.”

Omar Ayub Khan, minister for Economic Affairs chaired the meeting of ECCand was attended by adviser to the PM on finance Shaukat Tarin, minister for Industries and Production Makhdum Khusro Bakhtyar, minister for Energy Hammad Azhar, minister for Railways Muhammad Azam Khan Swati and minister for Interior Sheikh Rashid Ahmed. Federal secretaries and other senior government officers also attended the meeting.

A decision on SMEs policy was also deferred in an earlier ECC meeting held on November 15 to incorporate changes, proposed by advsior Tarin

The ECC also deferred a decision on Auto Industry Development and Export Policy (AIDEP) 2021-26, and directed the ministry of Industry & Production to present it in the next meeting after review of the same.

The last Automotive Development Policy (ADP) 2016-21 expired in June this year.

Pakistan’s auto industry attracted over $1 billion investment during the five years of last auto policy. Nine auto companies are in manufacturing and at least four more are expected to start operations by next year.

The statement said the ECC had approved allocation of gas under commercial production from United Energy Pakistan’s fields to SSGCL. “United Energy Pakistan will provide gas from Mitha and Bitro fields to SSGCL,” it added. The price of gas will be as per the applicable petroleum policy to be decided by the concerned regulators.

The ECC discussed a summary presented by ministry of Energy on mechanism for granting concessionary tariff to the eligible consumers of zero-rated industrial consumers of Lasbela Industrial Estate (LIEDA) and Sundar Industrial Estate (SIE) and for prospective industrial estates.

“The committee directed for installation of double meters at consumers of zero-rated industrial consumers of LIEDA and SIE for verification of reading by KE and LESCO and directed that subsidy claims may be processed on the basis of difference of readings,” the statement said.

The ECC also approved a technical supplementary grants tabled by ministry of Defence and ministry of Interior. Earlier, adviser Tarin, presided over the meeting of Technical Advisory Committee. The TAC reviewed the summaries in details and presented its recommendations to the ECC for its consideration.