The Economic Coordination Committee (ECC) of the Cabinet has approved technical supplementary grants (TSGs) amounting to approximately Rs41 billion for government bodies, infrastructure projects and various public-sector initiatives. The approvals include Rs11.329 billion for completing the closure process of the Utility Stores Corporation (USC), Rs10 billion for the Thar Coal Rail Connectivity Project and Rs8 billion for the Public Private Partnership Authority (P3A). The committee also sanctioned funding for tax administration reforms, business development, election preparations, agricultural training and other government programmes. In addition to the financial approvals, the ECC cleared a State Bank of Pakistan (SBP) framework intended to improve financing access for small enterprises and small farmers, while deferring a proposal concerning outstanding receivables owed to the Pakistan Agricultural Storage and Services Corporation (PASSCO) by provincial governments.
The meeting was held at the Finance Division under the chairmanship of Finance and Revenue Minister Senator Muhammad Aurangzeb. According to the official press release, the committee reviewed 17 agenda items submitted by different ministries and government divisions. The approved allocations address several areas of public expenditure, including the completion of an existing government restructuring process, infrastructure development, public-private investment arrangements and institutional operations. Among the largest allocations, the Rs11.329 billion grant for the Utility Stores Corporation will meet its immediate funding requirements and facilitate completion of the corporation’s closure. The Rs8 billion allocation for the Public Private Partnership Authority will support infrastructure projects developed through public-private partnership arrangements, while the Rs10 billion approved for the Ministry of Railways will provide budgetary support for the Thar Coal Rail Connectivity Project. The rail initiative is intended to facilitate the use of locally available coal for power generation and other industrial activities.
Several other institutions and programmes also received supplementary funding. Pakistan Revenue Automation Limited, which is associated with the Federal Board of Revenue’s transformation plan, was allocated Rs4 billion, while the Small and Medium Enterprises Development Authority (SMEDA) received Rs2 billion for its approved business plan. The Ministry of Education was granted Rs1.666 billion for training 1,000 agricultural professionals in China. The Pakistan Sports Endowment Fund Scheme, 2025, received approximately Rs934.481 million, while the Capital Development Authority was allocated Rs300 million for repairs at the Prime Minister’s Office and Staff Colony during fiscal year 2026-27. The Ministry of Climate Change received Rs150 million to support participation in the 31st Conference of the Parties (COP31). These allocations cover a range of administrative, institutional and development-related requirements across the federal government.
The ECC also approved funding requests connected with election preparations. The Election Commission of Pakistan (ECP) had sought Rs17.873 billion to procure non-sensitive materials for local government elections in Punjab, Khyber Pakhtunkhwa, Islamabad Capital Territory and cantonment boards. The committee approved the immediate release of Rs2 billion for this purpose. Separately, it sanctioned Rs596.18 million for the reallocation of previously surrendered funds covering local government elections in Islamabad Capital Territory, by-elections in Sindh and Balochistan, and delimitation activities in Punjab. The approvals provide funding for specific election-related requirements, while the remaining amount sought by the Election Commission was not included in the immediate release announced in the report.
Beyond supplementary grants, the committee approved an SBP financing framework designed to widen access to credit for small businesses and farmers. Under the framework, Agency Financial Institutions (AFIs) will be brought within the government’s existing risk coverage schemes for small enterprises and small farmers through wholesale and agency-based arrangements. The mechanism will use the outreach of eligible microfinance institutions and non-banking financial institutions to extend financing opportunities to intended beneficiaries. The ECC also approved an addendum to the Second Supplemental Trust Deed of the Credit Guarantee Trust Fund (CGTF), with the stated objective of making more effective use of the existing credit guarantee facility for affordable housing finance. These measures focus on expanding the reach of financing arrangements and using established risk coverage mechanisms to support access to credit.
The committee approved several additional policy measures affecting agriculture, trade and domestic manufacturing. These included Minimum Indicative Prices for the 2026 tobacco crop and a revision of cess rates for fiscal year 2026-27. The ECC also approved an amendment to SRO 693(I)/2006 concerning additional customs duty on imported tyres that are manufactured locally, with the stated aim of promoting domestic manufacturing. In another decision, it cleared a Commerce Ministry summary proposing investment of Export Development Fund resources in government securities. The decisions cover agricultural pricing, customs policy and the management of public-sector funds, alongside the larger supplementary grant package.
However, the ECC deferred a proposal concerning PASSCO’s outstanding receivables from provincial governments. The proposal sought to adjust the amounts owed through deductions at source, but the committee directed that the matter be brought back after further consultations with relevant stakeholders. The deferral leaves the issue pending additional discussions before a decision can be finalised. The meeting was attended by Federal Minister for Investment Qaiser Ahmed Sheikh, Federal Minister for Commerce Jam Kamal Khan, Federal Minister for Power Sardar Awais Ahmad Khan Leghari and Federal Minister for Education and Professional Training Dr Khalid Maqbool Siddiqui, along with federal secretaries and senior officials from the relevant ministries, divisions and regulatory authorities.
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