ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet met under the chairmanship of Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, to discuss potential changes to home remittances incentive schemes.
The Finance Division presented a summary outlining proposed adjustments, and the ECC tasked the State Bank of Pakistan along with the Finance Division to develop a comprehensive plan.
This plan, due by July 31, will include an impact analysis and a roadmap to ensure a smooth and well-managed transition for the incentive schemes.
New Risk Coverage Scheme for Small Farmers
The ECC also reviewed a proposal for a risk coverage scheme targeting small farmers and underserved areas.
In-principle approval was granted, with directives to fine-tune the proposal and add further safeguards ahead of its anticipated launch on August 14, 2025.
This scheme is expected to bring 750,000 new agricultural borrowers into the formal financial system and generate an additional credit portfolio of Rs. 300 billion over three years, from FY26 to FY28.
Financial Implications and Outlook
The estimated budget to cover risk and operational costs for participating banks stands at Rs. 37.5 billion, spread from FY27 to FY31.
This initiative reflects the government’s ongoing efforts to strengthen financial inclusion and support the agricultural sector.
