Islamabad:
Friday, Pakistan officially approved the purchase of 1.1% of the shares of the non -Western Development Bank (NDB) for $ 582 million in a decision that will help the nation in the long -term race to reduce dependence on The Bretton West of West of West’s financial system.
The Economic Coordination Committee (ECC) of the Cabinet approved the purchase of the actions of the NDB, which is established by five nations: Brazil, Russia, India, China and South Africa.
The ECC has also approved to transfer the actions of electricity distribution companies (DISCO) on behalf of the President of Pakistan to prepare these entities for privatization.
Federal Minister of Finance Muhammad Aurangzeb chaired the ECC meeting.
The ECC approved Pakistan members at the NDB, created by the member countries of the BRICS, according to a press release published by the Ministry of Finance after the meeting.
He added that the ECC “approved the purchase of 5,882 capital shares in the NDB, amounting to $ 582 million, with $ 116 million as a paid capital”.
The 5,882 shares are equal to 1.09% of the bank’s total participation. Pakistan in May of last year had shown the interest of joining the NDB.
The government has made the decision to join the new bank as part of its plans aimed at reducing dependence on the World Bank (WB) and the International Monetary Fund (IMF), which grants loans with attached political channels, according to the Pakistani authorities.
Brics promotes another financial architecture, with the NDB and the contingent reserve system. The NDB has approved nearly 100 projects worth $ 33 billion in the past nine years.
Membership of the NDB is open to all members of the United Nations with such conditions which are determined by a special majority of the Council of Governors.
The special majority is defined as an affirmative vote of four founding members at the same time as an affirmative vote of two thirds of the total voting power of the bank.
Pakistan-India’s rivalry cannot refuse Islamabad members of the NDB because it plans to win the support of the other four members, government sources said.
Russia recently informed Pakistan that its name had been added to the list of potential members of the NDB at the annual meeting of the Council of Governors of Johannesburg in 2024 and Pakistan is eligible to hold a subscription of 5,882 Capital shares of The bank.
Transfer of disk ownership
The Ministry of Finance said that the ECC also approved to transfer the actions of electricity distribution companies on behalf of the president of Pakistan.
The committee has approved the transfer with the observation that approval is subject to confirmation that the transfer will have no financial involvement, he added.
The government remains at the early childhood stadium of the privatization of the three nightclubs: the Faisalabad Electric Supply Company (FESCO), the Gujranwala Electric Power Company (GEPCO) and the Islamabad Electric Supply Company (IESCO).
At the time of the creation of nightclubs, it had been decided that the actions of these companies will be transferred from WAPDA on behalf of the President of Pakistan, after the approval of the Government of Pakistan.
Until now, only Islamabad, Lahore and Multan Power Distribution companies have partially completed the process of issuing actions on behalf of Wapda. But Wapda did not transfer these actions on behalf of the President of Pakistan.
The World Bank has identified 13 stages necessary before any disco can be sold, including the transfer of property on behalf of the president of Pakistan.
Other decisions
The ECC also approved the incorporation of a joint international business company in Singapore by Pakistan State Oil (PSO) and the State Oil Company of Azerbaijan Republic (Socar). The Committee asked the Ministry of Petroleum to guarantee reasonable diligence concerning specific investment approvals, in particular action injections, as well as the calendar for the operationalization of the company.
The ECC approved 27 billion rupees of additional subsidies for various projects, including 84 million rupees for the purchase of five transport vehicles for the president of the secretariat. It approved RS19.2 billion under the finance division for 133 projects of the deceased Department of Public Works of Pakistan. The funds will now be transferred to respective provincial ministries, divisions and provincial governments.
The government had decided to close the Pakistan public works department and transfer its projects and funds to other ministries, divisions and provincial governments.
The ECC also approved 5.4 billion funds for discretionary expenses on parliamentarians’ diets in Sindh and Khyber Pakhtunkhwa (KP). The Sindh province will receive 4.3 billion rupees and the remaining RS1.1 billion will be given to KP parliamentarians.
The ECC approved 1.9 billion rupees in favor of Nadra for the old FATA project, guaranteeing the transition of 43 citizens’ facilitation centers (CFC) in the KP. The allowance was rendered by the Division of Economic Affairs and registered under the internal division without additional financial burden to the Government, said the Ministry of Finance.
It approved 500 million rupees for the Ministry of National Health Services for the supply of vital medicines and vaccines. The ECC ordered the Ministry of Health to design a structural solution for the future payment of the pension in question.
The ECC approved 84 million rupees for the president’s secretariat (public) to replace obsolete official transport, allowing the purchase of two Hino Coaster mini-bus and three Toyota Hiace van as part of a replacement plan progressive.
The fleet of official vehicles of the president’s secretariat (public) is very old and obsolete. The majority of staff cars and other operational vehicles are 12 to 30 years old, which causes exorbitant maintenance costs as well as difficulties in performing official tasks for the head of state. Out of a total of 47 authorized vehicles, 43 vehicles should be replaced over a period of three years.
The ECC has also approved less than half a billion rupees for the project to improve the digital economy (deeply) under the board of directors (BOI) in order to facilitate the creation of Pakistan Business Portal (PBP ), aimed at rationalizing regulations, eliminating redundant laws, and providing a complete digital platform for companies.
The ECC approved a proposal from the Ministry of Commerce concerning the inclusion of new personalized pricing codes for the newly notified compulsory elements of Pakistan Standards and Quality Control Authority (PSQCA) in the order of import policies. The decision incorporates specific PVC and polymer products into the compulsory regulatory framework, guaranteeing compliance with Pakistani standards.
