The cabinet’s Economic Coordination Committee approved the duty changes alongside a first-loss credit framework for smaller firms and farmers and Rs57.85 billion in supplementary grants.
Pakistan’s Economic Coordination Committee (ECC) raised additional customs duties on selected imported tyres and motorcycle parts that are also made locally, Dawn reported. The rate on radial tyres and locally manufactured motorcycle parts was increased from 4% to 11%, while the rate on motorcycle parts imported by local manufacturers rose from 11% to 31%. The meeting on Thursday was chaired by Finance Minister Muhammad Aurangzeb.
The committee also approved a State Bank of Pakistan framework for first-loss coverage on lending to small and medium enterprises and small farmers through microfinance and non-bank institutions. It provides coverage of up to 20% for SME loans and 10% each for small farmers and medium-sized businesses. The government said the framework is intended to broaden access to finance.
The ECC approved an addendum to the Credit Guarantee Trust Fund deed to use the existing guarantee facility for affordable housing finance. Dawn reported that the committee approved 11 supplementary grants totalling Rs57.85 billion. These included Rs2bn for the Small and Medium Enterprises Development Authority, Rs11.329bn for the Industries and Production Division for immediate needs of the Utility Stores Corporation and completion of its closure, Rs8bn for the Public Private Partnership Authority, and Rs10bn for the Ministry of Railways’ Thar Coal Rail Connectivity Project.