ECC Approves Pension Fund and SME Support Initiative

The Economic Coordination Committee of the Cabinet in Islamabad recently made significant decisions during a meeting chaired by the Finance Minister. One of the key approvals was for the establishment of a Pension Fund, which will benefit both new employees and retired personnel.

Starting from July 1 of this year, a defined contributory scheme will be implemented for new employees, while armed forces will be included from July 1 of the following year. This move aims to provide financial security and stability to individuals post-retirement.

In addition to the Pension Fund, the ECC has also given the green light for technical supplementary grants to be allocated to various ministries and divisions. This decision will enable smoother operations and better resource management within the government.

Moreover, the federal government has proposed a 15 percent increase in pensions for retired employees in the upcoming fiscal year 2024-25. This increment seeks to address the growing needs and expenses faced by pensioners in the country.

Furthermore, a new initiative named the 'Risk Coverage Scheme for SMEs' has been introduced, with a focus on supporting small and medium-sized enterprises. Regular monitoring and evaluation of this scheme will ensure its effectiveness in providing financial protection to SMEs.

Lastly, the Ministry of Information Technology & Telecommunication has been granted approval to return Rs11.13 billion to the Universal Service Fund (USF) to overcome budget shortfalls. This decision reflects the government's commitment to ensuring the smooth functioning of essential services in the IT and telecom sector.

The recent approvals by the ECC signify a proactive approach towards enhancing financial security, supporting SMEs, and addressing budgetary challenges. These decisions are poised to have a positive impact on various sectors and individuals, contributing to overall economic stability and growth.