ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved income tax exemptions for the International Cricket Council (ICC) in connection with the ICC Champions Trophy 2025.
The ECC reviewed a summary presented by the Revenue Division, stating that these exemptions align with international best practices for hosting global sporting events.
The meeting of the Economic Coordination Committee was chaired by Finance and Revenue Minister Senator Muhammad Aurangzeb at the Finance Division in Islamabad. It was attended by Petroleum Minister Musadik Masood Malik, Industries and Production Minister 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.
Under the standardized hosting rights agreement between ICC and Pakistan, no taxes or deductions will be applied to ICC revenues, its subsidiaries, associates, officials, and non-resident delegates. However, Pakistani residents, including the Pakistan Cricket Board (PCB), will still be subject to income tax on their earnings from the tournament. Sales Tax and Federal Excise Duty (FED) exemptions will not be granted.
The tax exemption is not expected to cause a revenue loss as it was a prerequisite for securing the tournament’s hosting rights.
The committee discussed various economic matters and approved key decisions.
The ECC also reviewed a summary from the Ministry of National Food Security and Research regarding the lifting of the ban on the commercial export of sheep and goats to Kuwait. However, the agenda was deferred for further clarification and due diligence.
Additionally, a Technical Supplementary Grant (TSG) of Rs. 6.859 billion was approved for the Ministry of Energy (Power Division) to support development expenditures in the fiscal year 2024-25.
Based on a summary from the Petroleum Division, the ECC approved a three-year extension of the LNG Framework Agreement between Pakistan LNG Limited (PLL) and SOCAR Trading. Initially signed in 2023, the agreement allows PLL to procure one LNG cargo per month when required, without any financial obligations or take-or-pay commitments.
This extension aligns with Pakistan’s strategy for flexible LNG procurement based on seasonal demand, ensuring cost-effective energy solutions.
