ECC gives go-ahead for $582m capital share purchase in BRICS development bank

• ECC approves incorporation of int'l join trading company.
• Okays transfer of Discos shares in President's name.
• Greenlights Rs5.36bn TSG for Ministry of Housing.

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Friday approved the purchase of capital shares worth $582 million in the New Development Bank (NDB).

"The ECC approved Pakistan’s membership in the New Development Bank, established by BRICS member countries. The committee endorsed the purchase of 5,882 capital shares in the NDB, amounting to $582 million, with $116 million as paid-in capital,” the Finance Divisions said in a statement.

Established in 2015 by BRICS countries, the NDB is a multilateral development bank aimed at mobilising resources for infrastructure and sustainable development projects in emerging markets and developing countries (EMDCs).

BRICS, the group of major emerging economies comprising Brazil, Russia, India, China, and South Africa, aims to accelerate its push to reshuffle a world order it sees as outdated.

Pakistan had applied for BRICS membership last year in November. "Pakistan, as a developing country and an ardent supporter of inclusive multilateralism, believes that it can make important contributions in this grouping,” FO spokesperson had said.

During today's meeting, the ECC also approved the incorporation of an International Joint Trading Company in Singapore, formed by Pakistan State Oil (PSO) and the State Oil Company of Azerbaijan Republic (SOCAR).

It instructed the Ministry of Petroleum to ensure due diligence regarding specific investment approvals, particularly equity injections, as well as the timeline for the operationalisation of the company.

Besides, it approved a proposal from the Ministry of Commerce regarding the inclusion of PCT/HS codes for newly notified mandatory items of the Pakistan Standards and Quality Control Authority (PSQCA) in the Import Policy Order (IPO), 2022.

The decision incorporates specific PVC and polymer-based products into the mandatory regulatory framework, ensuring compliance with Pakistan Standards.

The ECC also okayed the transfer of shares of Discos in the name of the President of Pakistan, as proposed by the Ministry of Energy (Power Division), subject to confirmation that it would have no financial implications.

To ensure financial support for key initiatives, the ECC approved Technical Supplementary Grants (TSGs), including Rs19.15 billion under the Finance Division for 133 PSDP schemes of the defunct Pakistan Public Works Department (Pak-PWD).

“The funds will now be transferred to respective ministries, divisions, and provincial governments.”

The committee also approved Rs5.36 billion TSG for the Ministry of Housing and Works to execute development schemes under the SDGs Achievement Programme (SAP), with Rs4.25 billion allocated for Sindh and Rs1.11 billion for Khyber Pakhtunkhwa.

It approved Rs1.914 billion in favour of NADRA for the FATA TDP-ERP (KP-CCDSP) Project, ensuring the transition of 43 Citizen Facilitation Centers (CFCs) in Khyber Pakhtunkhwa. The allocation has been surrendered by the Economic Affairs Division and recorded under the Interior Division, with no additional financial burden on the government.

The ECC also approved Rs500 million for the Ministry of National Health Services, Regulations & Coordination (NHSR&C) for the procurement of life-saving medicines and vaccines, with the directive to devise a structural solution for future payment of the subject pension.

It approved Rs84 million for the President’s Secretariat (Public) to replace outdated official transport, allowing for the procurement of two Hino Coaster mini-buses and three Toyota Hiace vans as part of a phased replacement plan.