ISLAMABAD: Just five days after the announcement of federal budget 2020-21, the government on Wednesday approved about one and half a dozen supplementary grants involving a total financial estimate of Rs52.61 billion.

The decisions were taken at a meeting of the Economic Coordination Committee (ECC) of the Cabinet presided over by Finance Adviser Dr Abdul Hafeez Shaikh. The ECC decided to handover Pakistan Machine Tool Factory (PMTF) to Strategic Plans Division (SPD).

For the purpose of operationalisation of PMTF, Rs500 million shall be provided to SPD as a loan. The government will also pay all the liabilities accrued till the transfer of management control of PMTF to SPD after partial settlement of liabilities of Rs1.78bn.

The ECC also approved book value adjustment of Rs30.81bn overdue loans to the Earthquake Reconstruction and Rehabilitation Authority (ERRA) over and above its allocated development and non-development budget. It also allowed, on the recommendation of a committee earlier constituted by the ECC, to convert two relent Chinese loans in to government loans keeping in view the subsuming of ERRA into the National Disaster Management Authority.

The meeting also approved the ‘Risk Sharing Facility for SBP Refinance Scheme’ to support employment and prevent layoff of workers. The scheme supports provision of credit at concessional rate to businesses that commit not to lay off workers till September 30 this year.

Published in Dawn, June 18th, 2020