The Economic Coordination Committee (ECC) has decided to gradually phase out the State Bank of Pakistan’s (SBP) Long-Term Financing Facility (LTFF) and shift its portfolio to Exim Bank.
According to a statement from the Finance Division, the decision was taken during an ECC meeting chaired by Finance Minister Muhammad Aurangzeb. The committee reviewed a summary presented by the Finance Division regarding this transition.
Key Financial Approvals by ECC
- The Rs330 billion LTFF portfolio will be shifted to Exim Bank, with Rs1.001 billion allocated through a Technical Supplementary Grant (TSG) to cover subsidy requirements for the FY 2025.
- This transition signals a gradual shift in export-related financing from the SBP to Exim Bank.
Additionally, the ECC approved several other financial allocations:
- Ministry of Information and Broadcasting: Approved a Rs2 billion TSG from its allocated Rs5.6 billion budget to clear outstanding advertisement dues owed to media houses.
- Ministry of Defence: Approved Rs430 million for the execution of SAP schemes in Punjab during the current fiscal year.
- Jinnah Medical Complex & Research Centre (JMC&RC): Allocated Rs250 million as government-paid-up capital to support the development of a 1,000-bed academic medical centre in Islamabad. The ECC directed JMC&RC to provide a detailed expenditure breakdown before requesting further funding.
- Finance Division: Approved Rs24.556 million (equivalent to $87,671.21 at Rs280.1/USD) to be paid to Mrs. Lia Bomba of JAED Textile Pvt Ltd, Sydney, Australia, in compliance with a Supreme Court of Pakistan ruling issued on March 19, 2025.
The meeting was attended by key government officials, including Minister for Power Sardar Awais Ahmed Khan Leghari, Minister for Petroleum Ali Parvez Malik, Minister for Board of Investment Qaiser Ahmed Sheikh, along with SECP Chairman, federal secretaries, and senior officials from relevant ministries and divisions.
