ECC endorses purchase of $582mn capital shares in BRICS’s New Development Bank

The Economic Coordination Committee (ECC) has given its nod to the purchase of capital shares worth $582 million in the New Development Bank (NDB), according to a Finance Division statement.

Established in 2015 by BRICS countries, the NDB is a multilateral development bank aimed at mobilising resources for infrastructure and sustainable development projects in BRICS and other emerging markets and developing countries (EMDCs).

“The ECC approved Pakistan’s membership in the New Development Bank, established by BRICS member countries. The committee endorsed the purchase of 5,882 capital shares in the NDB, amounting to USD 582 million, with USD 116 million as paid-in capital,” the statement read on Friday.

The countries that comprise BRICS—which stands for Brazil, Russia, India, China, and South Africa, and now five new members—are an informal grouping of emerging economies hoping to increase their sway in the global order. The group was established in 2009.

Pakistan is also looking forward to become a part of BRICS. The country applied for the membership of BRICS back in 2023.

“We have taken this decision after having noted the BRICS-related developments in Johannesburg,” Pakistan Foreign Office’s spokesperson said then.

Meanwhile, US President Donald Trump, after winning 2024 elections, threatened to impose a 100% tariff on the BRICS group nations if they undercut the US dollar.

When asked about Trump’s reservations over BRICS, Islamabad said there was no change in Pakistan’s policy to join the BRICS and the country was working with the member countries to become a part of the intergovernmental organisation.

In the Friday’s meeting, the ECC also approved a proposal from the Ministry of Commerce regarding the inclusion of PCT/HS codes for newly notified mandatory items of the Pakistan Standards and Quality Control Authority (PSQCA) in the Import Policy Order (IPO), 2022.

“The decision incorporates specific PVC and polymer-based products into the mandatory regulatory framework, ensuring compliance with Pakistan Standards,” the Finance Division said.

The ECC also deliberated on the transfer of shares of DISCOs in the name of the President of Pakistan as proposed by the Ministry of Energy (Power Division).

“The committee approved the transfer with the observation that the approval is subject to confirmation that the transfer will have no financial implications.”

The ECC also approved the incorporation of an International Joint Trading Company in Singapore by Pakistan State Oil (PSO) and the State Oil Company of Azerbaijan Republic (SOCAR).

The committee instructed the Ministry of Petroleum to ensure due diligence regarding specific investment approvals, particularly equity injections, as well as timeline for operationalisation of the company, according to the Finance Division.

To ensure financial support for key initiatives, the ECC also approved multiple Technical Supplementary Grants (TSGs).

It approved Rs19.15 billion under the Finance Division for 133 public sector development programme (PSDP) schemes of the defunct Pakistan Public Works Department (Pak-PWD).

“The funds will now be transferred to respective ministries, divisions, and provincial governments.”

The ECC also greenlighted Rs5.36 billion for the Ministry of Housing and Works to execute development schemes under the SDGs Achievement Programme (SAP), with Rs4.25 billion allocated for Sindh and Rs1.11 billion for Khyber Pakhtunkhwa.

The committee approved Rs1.914 billion ($6.836 million) in favour of the National Database & Registration Authority (NADRA) for the FATA TDP-ERP (KP-CCDSP) Project, ensuring the transition of 43 Citizen Facilitation Centers (CFCs) in Khyber Pakhtunkhwa.

“The allocation has been surrendered by the Economic Affairs Division and recorded under the Interior Division with no additional financial burden on the government.”

The ECC okayed Rs500 million for the Ministry of National Health Services, Regulations & Coordination (NHSR&C) for the procurement of life-saving medicines and vaccines. The committee directed the Ministry of Health to devise a structural solution for future payment of the subject pension.

It approved Rs84 million for the President’s Secretariat (Public) to replace outdated official transport, allowing for the procurement of two Hino Coaster mini-buses and three Toyota Hiace vans as part of a phased replacement plan.

The committee also greenlighted a TSG for the Digital Economy Enhancement Project (DEEP) – Component II under the Board of Investment (BoI) to facilitate the establishment of the Pakistan Business Portal (PBP), aimed at streamlining regulations, eliminating redundant laws, and providing a comprehensive digital platform for businesses, according to the Finance Division statement.