ECC Approves EV Subsidy and TSG for Remittance Scheme Reimbursements for FY2024-25

The Economic Coordination Committee (ECC) of the Cabinet met today under the chairmanship of the Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, who joined the proceedings virtually. The meeting deliberated on several key economic matters, including the rollout of a new energy vehicle policy, extension of grants-in-aid for Quaid-i-Azam University, and approval of a technical supplementary grant related to the Telegraphic Transfer Charges Incentive Scheme. During the session, the ECC also approved an EV subsidy and a TSG for reimbursement claims under the Remittance Scheme for FY2024-25.

The session was attended by Federal Minister for Power Sardar Awais Ahmed Khan Leghari, Minister for Petroleum Ali Pervaiz Malik, Minister for National Food Security and Research Rana Tanveer Hussain, along with senior officials from relevant ministries, divisions, and departments.

ECC Approves EV Subsidy and TSG for Remittance Scheme Reimbursements

The Committee considered and approved a summary submitted by the Ministry of Industries and Production regarding the implementation of a subsidy scheme to promote the adoption of electric bikes and rickshaws/loaders by citizens of Pakistan. A budgetary provision of Rs 9 billion has already been made for FY 2025-26 to finance this initiative. The scheme also includes the provision of free electric bikes to top-performing students of government colleges. As per the approved plan, 116,000 electric bikes and 3,170 electric rickshaws/loaders will be introduced in two phases. In the initial phase, expected to be launched by the Prime Minister shortly, 40,000 electric bikes and 1,000 electric rickshaws/loaders will be rolled out.

The ECC also reviewed and approved a technical supplementary grant of Rs 30 billion, requested by the Finance Division, to settle outstanding claims from the previous fiscal year amounting to Rs 58.26 billion under the Telegraphic Transfer Charges Incentive Scheme. The Committee directed the Finance Division to coordinate with the State Bank of Pakistan (SBP) to work out the payment modalities for the grant. It also instructed the Finance Division to complete a detailed assessment, including analysis of pros and cons, financial modalities, and opportunity cost of the Pakistan Remittance Initiative, in collaboration with the SBP, and present its final recommendations incorporating stakeholder feedback by mid-September, following a thorough analysis due by the end of August.

Additionally, the ECC approved in principle a bailout grant of Rs 2 billion for Quaid-i-Azam University, contingent upon the preparation and presentation of a comprehensive financial self-sustainability plan. The university, in collaboration with the Higher Education Commission, is required to submit a clear roadmap outlining the strategy to achieve long-term financial stability and reduce dependency on future bailout packages.