ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved additional funds of Rs1 billion for hosting Shanghai Cooperation Organisation (SCO) Summit to be held on October 15-16, 2024 here, official sources told Business Recorder.
On September 11, 2024, the Ministry of Foreign Affairs (MoFA) informed the ECC that Pakistan, being the chair of the SCO Council of Heads of Government (SCO-CHG) for the year 2024, would host the Summit.
According to the MoFA, being the Organisation’s second-highest decision-making body, hosting the SCO summit this year would not only reassert Pakistan’s pivotal position as an important regional country that firmly believes in peace, dialogue and diplomacy, but would also increase the country’s prestige and reputation for having hosted an event of this scale and representational level after a long time.
‘Pakistan should promote trade, economic ties with SCO member states’
The MoFA was of the view that since the hosting of an event of such importance warrants elaborate preparation with attention to detail, it stands to reason that the same requires an adequate financial layout. MoFA stated that it was provided Rs 1.631billion (Non-ERE)for the FY 2023-24 and Rs1.732billion (Non-ERE) under Demand No 48 “Foreign Affairs Division” in the budget for the FY 2024-25.
The Foreign Ministry further stated that this allocation, however, includes budget of 14 spending units at headquarters, thereby, amply manifesting that the MoFA would not be in a position to host such an important event from its regular bucket while also meeting routine operational expenditure for FY 2024-25.
It was added that in order to hold the conference in a befitting manner, the MoFA had prepared a tentative plan for hosting of upcoming SCO-CHG in Islamabad in October-2024.
On the recommendation of the Ministry of Finance, the prime minister has approved the summary moved by the MoFA for allocation of additional funds with the direction to move a summary for TSG amounting to Rs1 billion for ECC of the Cabinet.
During the ensuing discussion, the ECC forum was briefed that Pakistan would be hosting the summit of SCO-CHG in Islamabad, wherein, 11 heads of states would be participating.
The forum while reviewing the anticipated expenditure details, provided by the MoFA in the summary for the prime minister on August13, 2024, asked about the rationale behind the estimates presented in the summary.
The forum, while recognising the importance of SCO Summit and paucity of time for making necessary arrangements for the event agreed to approve the TSG amounting to Rs1billion; however, the MoFA was desired to share the details pertaining to the hiring of accommodation, hiring of event management company and unforeseen expenditure with the Finance Division.
The forum also observed that the proposal of the MoFA was submitted at such belated stage which tantamount to seeking ex-post facto approval.
The sources said the ECC approved the proposal with the directions to the MoFA to share with the Finance Division, all details of the proposed expenditure, specifically that pertaining to the hiring of accommodation, hiring of event management company and unforeseen expenditures. The MoFA has shared the requisite information with the Finance Ministry to satisfy it.
Copyright Business Recorder, 2024