ECC approves 'Green Taxonomy' to support eco-project funding
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In a major step towards environmental reform, the Economic Coordination Committee (ECC) approved Pakistan's Green Taxonomy, proposed by the Ministry of Climate Change and Environmental Coordination.
The finance minister lauded the move, calling it 'long overdue' and crucial for unlocking green financing.
According to a press release issued by the Ministry of Finance, the meeting—chaired by Finance Minister Muhammad Aurangzeb—deliberated on a wide range of agenda items related to industrial growth, environmental sustainability, skills development, housing finance, and telecommunications.
The ECC reviewed and endorsed a report by the Ministry of Commerce on enhancing industrial competitiveness and promoting export-led growth in the steel sector. The proposal aligns with the National Tariff Policy 2025–30 and seeks to reduce production costs and boost exports.
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The ECC greenlit a markup subsidy and risk-sharing scheme to promote affordable housing finance, aiming to expand access to low-cost housing. It further directed the development of an integrated database of the housing sector, in consultation with federal and provincial stakeholders, to improve implementation.
The committee also approved a summary from the Ministry of Commerce to file an appeal in the Supreme Court against a Lahore High Court decision that granted gas/RLNG tariff concessions to Ghani Glass Ltd, noting that energy concessions for export sectors had already been withdrawn and were no longer in effect for any industry.
In skills development, the ECC approved a Rs1 billion government guarantee for the Pakistan Skill Impact Bond (PSIB) to support outcomes-based vocational training programmes. The committee advised the ministry to transition towards public-private partnerships and reduce reliance on sovereign guarantees.
The Ministry of Industries and Production briefed the ECC on trends in the vegetable ghee and oil market. Although national stocks are reportedly sufficient, the committee expressed concern over the slow pass-through of declining global prices to domestic consumers.
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It urged close coordination with the Competition Commission of Pakistan, National Price Monitoring Committee (NPMC), and provincial authorities to prevent potential cartelization.
In the telecom sector, the ECC approved a proposal by the Ministry of IT and Telecommunication to revise charges for Radio-Based Services (RBS). It directed regular revisions of these charges every three to five years in line with economic shifts and technological advancements.
The meeting, which was also attended by Power Minister Sardar Awais Leghari, Petroleum Minister Ali Pervaiz Malik, and Commerce Minister Jam Kamal Khan, also approved a revised advisory committee for the release of IMT spectrum, critical for improving broadband access.
Finally, the ECC approved the formal recognition of shipbreaking and recycling as an industry, as proposed by the Ministry of Maritime Affairs. The committee instructed the ministry to share sector power consumption data with the Power Division to assess the impact of applying industrial instead of commercial power tariffs.
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