ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet held a crucial session under the leadership of Finance Minister Senator Muhammad Aurangzeb.
The meeting was attended by prominent federal ministers and senior government officials from various ministries and departments.
Key decisions were made regarding Technical Supplementary Grants (TSGs) to support ongoing national projects in the financial year 2024-25.
The ECC approved a TSG of Rs 15.839 billion for the Ministry of Defence to cover salaries, operational costs, and dues under the Prime Minister’s Package for the martyrs of the recent conflict with India.
The Finance Division was granted Rs 63 million for essential rent-related costs and Rs 2.603 trillion to manage both domestic and foreign loan repayments.
Rs 100 million was allocated to the Ministry of Foreign Affairs for overseas delegation expenses.
Support for Law Enforcement and Strategic Projects
The Ministry of Interior & Narcotics Control received over Rs 2.3 billion in total, with funds designated for the
Frontier Corps in KP and Balochistan, Islamabad Police, and upgradation of police stations.
Strategic Plans Division received Rs 5.5 billion for SUPARCO, supporting national space research.
The Petroleum Division was granted Rs 117.97 million for enhancing Pakistan Petroleum Corehouse facilities.
Additionally, Rs 254.57 million was approved as an incentive for PAS/PSP officers in Balochistan, and Rs 198 million for the upkeep of Islamabad’s Executive Building.
Gas Pricing Overhaul and Economic Measures
The ECC reviewed a summary from the Petroleum Division and approved a revised gas pricing structure for FY2025-26, effective July 1, 2025.
The new pricing model complies with OGRA guidelines and IMF commitments, focusing on removing cross-subsidies and targeting support to low-income consumers.
Fixed charges for households were adjusted while industrial and bulk consumer rates saw an average hike of 10%.
Further, the ECC approved forming a 10-member steering committee to assess sugar imports to stabilize market prices.
The Finance Division was directed to present a plan on revised home remittance incentives by July 31, 2025.Lastly, the ECC gave in-principle approval to a new risk coverage scheme for small farmers, which aims to inject Rs 300 billion in credit and include 750,000 new borrowers into the formal banking system from FY26 to FY28.
