Islamabad: In a bid to accelerate the adoption of digital payments, the Economic Coordination Committee (ECC) of the Cabinet has approved a Rs3.5 billion Technical Supplementary Grant to subsidize merchant fees for Raast QR code transactions. The initiative, set to roll out this fiscal year, may continue for up to three years, aiming to make instant digital payments more affordable for businesses across Pakistan.
The State Bank of Pakistan (SBP) has been tasked with launching the subsidy program immediately and providing an assessment of its effectiveness by the end of the fiscal year. Officials noted that the measure is expected to increase digital payment penetration while easing transaction costs for merchants.
Relief Package of Rs5.8 Billion for Flood-Affected Areas
The ECC also greenlit a Rs5.8 billion relief package for communities affected by recent monsoon rains. Of this, Rs4 billion will be released immediately to address urgent needs, including emergency relief and initial rehabilitation work. Analysts suggest that timely disbursement will be critical in preventing further disruption in these vulnerable regions.
Funding Boost for Energy Efficiency Program
Another significant approval came in the form of a Rs2 billion grant for the Prime Minister’s Fan Replacement Programme, managed by the National Energy Efficiency and Conservation Authority. The initiative will operate under a tripartite model involving the SBP and commercial banks, targeting household energy savings and reduced electricity costs.
Maritime and Industrial Measures
The ECC also agreed to reimburse the Pakistan National Shipping Corporation Rs330.526 million, following an earlier directive. The Ministry of Industries and Production has been instructed to expedite arbitration and settlement processes related to Pakistan Steel Mills claims, a move expected to resolve long-standing financial and operational disputes.
Expanding Credit Access for Small Farmers
In a forward-looking move, the committee gave in-principle approval for a risk coverage scheme targeting small farmers and underserved areas. The program aims to bring roughly 750,000 new agricultural borrowers into the formal credit system over the next three years, potentially improving access to working capital and building resilience at the farm level.
Gas Sector Oversight and Government Review
The meeting also reviewed the performance of the gas sector, directing the Petroleum Ministry to implement measures to reduce losses and enhance supply. Finance Minister Muhammad Aurangzeb presided over the session, engaging senior officials from multiple ministries and emphasizing regular progress updates on all approved initiatives.
