The Economic Coordination Committee (ECC) of the federal cabinet approved Pakistan’s first Green Taxonomy on July 25. The initiative, proposed by the Ministry of Climate Change and Environmental Coordination, aims to promote environmentally sustainable investments across the country. Finance Minister Muhammad Aurangzeb chaired the meeting and praised the step as a much-needed policy shift. He emphasized that this model will support eco-friendly projects by enabling targeted financial support.
According to the Finance Ministry’s statement, the ECC also approved several key policy decisions. These include a report from the Ministry of Commerce on promoting industrial competitiveness and export-led growth in the steel sector under the National Tariff Policy 2025–30. The committee also gave a go-ahead to file a Supreme Court appeal against a gas tariff relief verdict for Ghani Glass Ltd, citing the withdrawal of energy subsidies from other export sectors.
In another significant move, the ECC approved the launch of the Pakistan Skills Impact Bond (PSIB) by issuing a Rs1 billion government guarantee. This will support results-based financing for skills development. The committee also approved a markup subsidy and risk-sharing scheme for affordable housing finance. The goal is to improve housing access for low-income groups while asking the ministry to build a unified database for effective implementation.
The ECC addressed consumer concerns about edible oil and ghee prices. Though the Ministry of Industries assured adequate stock, the committee noted that falling global prices are not benefiting local consumers. It directed strict monitoring to prevent unjustified price hikes and potential cartel behavior. Coordination with the Competition Commission, National Price Monitoring Committee, and provincial governments was also advised.
Lastly, the ECC approved changes to radio-based service fees under the Ministry of IT and revised the oversight committee for IMT spectrum auctions. It also formally recognized shipbreaking and recycling as an industry. The committee instructed the Petroleum and Power divisions to collaborate on evaluating energy pricing impacts. The meeting included several federal ministers and senior officials from related ministries and departments.