Islamabad, February 20, 2025 – The Economic Coordination Committee (ECC) of the Cabinet, in a meeting on Friday, granted approval for a tax exemption on the income generated by the International Cricket Council (ICC) from the ICC Champions Trophy 2025.
The ECC, chaired by Minister for Finance and Revenue, Senator Muhammad Aurangzeb, convened at the Finance Division, Islamabad, to discuss key economic decisions. The meeting saw participation from Minister for Petroleum Musadik Masood Malik, Minister for Industries and Production Rana Tanveer Hussain, Chairman of the Federal Board of Revenue (FBR), Chairman of the Securities and Exchange Commission of Pakistan (SECP), Federal Secretaries, and senior officials from relevant ministries and divisions.
The ECC reviewed the Revenue Division’s proposal and approved income tax exemptions for the ICC, aligning with international best practices for hosting major global sporting events. As per the standardized hosting rights agreement between ICC and Pakistan, all revenues earned by the ICC, its subsidiaries, associates, officials, and non-resident delegates will be exempt from income tax. However, Pakistani residents, including the Pakistan Cricket Board (PCB), will remain subject to income tax on their earnings from the tournament. Sales Tax and Federal Excise Duty (FED) will continue to apply, ensuring that local tax obligations remain intact. The tax exemption was a necessary condition for securing the hosting rights for the event and is not expected to result in a revenue loss.
During the meeting, the ECC also reviewed a proposal from the Ministry of National Food Security & Research regarding the removal of the ban on commercial exports of sheep and goats to Kuwait. However, the decision was deferred for further clarification and due diligence.
In another significant development, the ECC approved a Technical Supplementary Grant (TSG) of Rs. 6.859 billion for the Ministry of Energy (Power Division) to support development expenditures in the current financial year (2024-25).
Additionally, based on the Petroleum Division’s summary, the ECC approved the extension of the LNG Framework Agreement between Pakistan LNG Limited (PLL) and SOCAR Trading for another three years. Originally signed in 2023, the agreement enables PLL to procure one LNG cargo per month as needed, without any financial obligations or take-or-pay commitments. This extension aligns with Pakistan’s strategy for flexible LNG procurement, ensuring cost-effective energy solutions based on seasonal demand.
The ECC continues to play a crucial role in shaping Pakistan’s economic policies, facilitating international partnerships, and ensuring a stable financial framework for future growth.