ECC Approves Multiple Supplementary Grants Worth Billions to Address Key National Priorities

ECC Approves Multiple Supplementary Grants Worth Billions to Address Key National Priorities

The Economic Coordination Committee (ECC) of the Cabinet, chaired by Federal Minister for Finance Senator Muhammad Aurangzeb, met to review inflation trends, essential commodity prices, and approve several key proposals, including significant supplementary grants for various national projects and initiatives. The ECC approved a technical supplementary grant of Rs. 2.79 billion for the procurement of arms and ammunition components. The grant also includes engaging Nespak as the design consultant for Digital Enforcement Stations (DES) and check posts.

A proposal by the Ministry of Interior for the release of Rs. 494.56 million was approved to fund the construction of barracks and check posts for Frontier Corps KP (North). This initiative aims to enhance security infrastructure in the region.

The ECC reviewed a proposal for the release of Rs. 1.792 billion to support the smooth conduct of activities related to the Reko Diq project, as per the Memorandum of Understanding (MoU) and agreement with the Reko Diq Mining Company. However, the committee directed that the proposal be resubmitted in the next meeting with a detailed breakdown of how the funds would be utilized, as regular funds had already been allocated for current expenditures.

The ECC approved a supplementary grant of Rs. 500 million for the Intelligence Bureau Division to support its operational requirements.

The ECC approved a summary submitted by the Revenue Division to introduce policy interventions in the Export Facilitation Scheme (EFS) 2021. These changes aim to plug revenue leakages while ensuring minimal disruption for compliant exporters. The interventions include reducing the input utilization period, replacing insurance guarantees with bank guarantees, and withdrawing EFS facilities for importers of iron and steel scrap.

The ECC approved a proposal by the Power Division to amend the 16th February 2024 mediation agreement related to claims of K-Electric (KE) for tariff differential subsidies, payables to state-owned enterprises (CPPA/NTDC and SSGC), and KWSB. The amendment was approved with the condition that it would not result in any tariff increase.

The ECC also reviewed inflation trends, noting a significant decline in inflation during the first half of FY25 to 7.2 percent, compared to 28.8 percent in the same period last year. December 2025 inflation was recorded at 4.1 percent, the lowest in 80 months. Despite this, the ECC expressed concern over rising prices of sugar, vegetables, and edible oil and directed the Ministry of Industries and Production and the Ministry of National Food Security & Research to collaborate with the National Price Monitoring Committee (NPMC) to address these issues.

The committee also called on Provincial Price Control Committees to enforce strict compliance with price control mechanisms, curb cartelization, and prevent profiteering, especially ahead of Ramadan.