ECC Approves Tax Exemptions for ICC 2025

The Economic Coordination Committee (ECC) convened on Thursday under the leadership of Finance and Revenue Minister Senator Muhammad Aurangzeb at the Finance Division, Islamabad. The session focused on crucial economic issues and resulted in several key approvals.

Attendees included Minister for Petroleum, Musadik Masood Malik; Minister for Industries and Production, Rana Tanveer Hussain; along with senior officials from the Federal Board of Revenue (FBR), the Securities and Exchange Commission of Pakistan (SECP), and other relevant government bodies.

The committee examined a proposal from the Revenue Division, granting tax exemptions to the International Cricket Council (ICC) for the upcoming ICC Champions Trophy 2025. This move follows global norms for hosting major international sports events. According to the established agreement between the ICC and Pakistan, no taxes or deductions will be imposed on ICC-related revenues, its affiliates, personnel, or international representatives.

On the other hand, domestic entities, including the Pakistan Cricket Board (PCB), will still be required to pay taxes on income generated from the event. Furthermore, no exemptions will apply to Sales Tax and Federal Excise Duty (FED).

The committee reassured that these tax concessions would not lead to a revenue shortfall, as they are a necessary component of securing the hosting rights for the prestigious tournament.

Additionally, a proposal regarding the lifting of the ban on sheep and goat exports to Kuwait was discussed by the Ministry of National Food Security & Research. However, the matter was deferred for further review and clarification.

The ECC also sanctioned a supplementary financial grant of Rs. 6.859 billion for the Ministry of Energy (Power Division) to fund development projects for the current fiscal year (2024-25).

In another decision, based on recommendations from the Petroleum Division, the ECC authorized the extension of the LNG Framework Agreement between Pakistan LNG Limited (PLL) and SOCAR Trading for an additional three years. This agreement, initially signed in 2023, ensures that PLL can procure one LNG cargo per month as needed, without being bound by financial commitments or take-or-pay clauses. The extension is in line with Pakistan's strategy for adaptive LNG procurement, offering a more flexible and cost-effective approach to energy sourcing based on seasonal demand.