ISLAMABAD: The government on Thursday increased additional customs duty (ACD) on import of tyres and motorcycle parts produced locally and approved first-loss coverage for small and medium enterprises and small farmers. The decisions were taken at a meeting of the Economic Coordination Committee (ECC) of the cabinet, presided over by Finance Minister Muhammad Aurangzeb. The committee also approved investment of Export Development Fund (EDF) resources in government securities and allowed Rs57.85 billion in supplementary grants a day after a staff-level agreement with the International Monetary Fund (IMF) and at the conclusion of the first quarter of the fiscal year. Under the decision, the government increased ACD from 4pc to 11pc on import of radial tyres and motorcycle parts that are manufactured locally. It also increased ACD from 11pc to 31pc on motorbike parts imported by local manufacturers. Both measures are aimed at facilitating local manufacturers of radial tyres and motorcycle parts. “On a summary submitted by the Revenue Division, the ECC approved an amendment to SRO 693(I)/2006 concerning the levy of additional customs duty on import of tyres being manufactured locally. The measure is aimed at promoting domestic manufacturing,” an official statement said. The ECC also approved a financing framework developed by the State Bank of Pakistan to facilitate the inclusion of Agency Financial Institutions (AFIs) under the government’s existing Risk Coverage Schemes for Small Enterprises and Small Farmers through wholesale and agency arrangements. The framework provides for first-loss coverage to loans up to 20pc for SMEs and 10pc each to small farmers and medium size industries. “The framework aims to broaden access to finance by leveraging the outreach of eligible microfinance and non-banking financial institutions,” the statement added. The ECC also approved an Addendum to the Second Supplemental Trust Deed of the Credit Guarantee Trust Fund (CGTF), originally meant for Prime Minister’s Mera Pakistan Mera Ghar scheme, expanding its scope to facilitate more effective utilisation of the existing credit guarantee facility to support affordable housing finance. The meeting approved 11 supplementary grants totalling Rs57.85bn. These included Rs2bn for the Small and Medium Enterprises Development Authority to facilitate implementation of its approved business plan in line with the prime minister’s vision. It also approved another Rs11.329bn for the Industries and Production Division to meet the immediate funding requirements of the Utility Stores Corporation and facilitate completion of its closure process. On the request of the Privatisation Division, the ECC approved Rs8bn for the Public Private Partnership Authority (P3A) to support the development and implementation of infrastructure projects through public-private partnerships. The meeting also approved a Rs10bn grant for the Ministry of Railways to provide budgetary cover for the Thar Coal Rail Connectivity Project and facilitate the utilisation of indigenous Thar coal for power generation and other industrial sectors. Published in Dawn, October 9th, 2026