ECC approves over Rs39 billion in supplementary grants

The Economic Coordination Committee (ECC) of the Cabinet approved a series of policy measures, including technical supplementary grants (TSGs) worth Rs39 billion to support development projects, institutional requirements, infrastructure initiatives and sectoral measures.

The meeting, chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb at the Finance Division, considered 17 agenda items submitted by various Ministries and Divisions.

The ECC approved a financing framework developed by the State Bank of Pakistan (SBP) to include Agency Financial Institutions (AFIs) under the Government’s existing Risk Coverage Schemes for Small Enterprises and Small Farmers through wholesale and agency arrangements.

The framework seeks to expand access to finance by utilizing the outreach of eligible microfinance and non-banking financial institutions.

The Committee also approved an Addendum to the Second Supplemental Trust Deed of the Credit Guarantee Trust Fund (CGTF) to facilitate more effective utilisation of the existing credit guarantee facility for affordable housing finance.

On the development and institutional side, the ECC approved a TSG of Rs2bn for the Small and Medium Enterprises Development Authority (SMEDA) to implement its approved Business Plan.

It also approved Rs11.329bn for the Utility Stores Corporation (USC) to meet its immediate funding requirements and facilitate completion of its closure process. A TSG of Rs8bn was approved for the Public Private Partnership Authority (P3A) to support the development and implementation of infrastructure projects through public-private partnerships.

The ECC further approved Rs10bn for the Ministry of Railways to provide budgetary cover for the Thar Coal Rail Connectivity Project, aimed at facilitating the utilisation of indigenous Thar coal for power generation and other industrial sectors.

For election-related requirements, the Committee approved Rs596.18 million for the Election Commission of Pakistan (ECP) for reallocation and revalidation of surrendered funds for local government elections in Islamabad Capital Territory, local government bye-elections in Sindh and Balochistan, and delimitation activities in Punjab.

The ECC also approved the immediate release of Rs2bn through a TSG against the proposed Rs17.873bn allocation for procurement of non-sensitive election materials for local government elections in Punjab, Khyber Pakhtunkhwa, ICT and Cantonment Boards.

The Committee approved Rs300m for the Capital Development Authority (CDA) to meet essential repair and maintenance expenditure relating to the Prime Minister’s Office and Prime Minister’s Staff Colony during FY2026-27.

It also approved Rs150m for the Ministry of Climate Change and Environmental Coordination for requirements related to Pakistan’s participation in COP31 in Antalya, Türkiye.

The ECC approved Rs934.481m for the Pakistan Sports Endowment Fund Scheme 2025 under the Ministry of Inter-Provincial Coordination to support operationalization of the Fund.

A TSG of Rs1.666bn was also approved for the Prime Minister’s Initiative for short-term training of 1,000 agricultural professionals in China. The Committee approved Minimum Indicative Prices for the 2026 tobacco crop and revision of cess rates for 2026-27. However, the proposal to adjust PASSCO’s outstanding receivables from provincial governments through at-source deductions was deferred for further consultation with relevant stakeholders.

On the revenue front, the ECC approved an amendment to SRO 693(I)/2006 concerning the levy of Additional Customs Duty on locally manufactured tyres, aimed at promoting domestic manufacturing.

It also approved Rs4bn for Pakistan Revenue Automation (Pvt.) Limited (PRAL) to support ongoing restructuring and implementation of the FBR’s Transformation Plan. The ECC further approved investment of Export Development Fund (EDF) resources in government securities in accordance with the approved framework to ensure productive utilization of the Fund’s resources and sustainable financial management.