The government on Tuesday approved several supplementary grants totalling Rs24 billion, including additional allocations for the armed forces and funds for the construction of Customs enforcement posts along the Indus River. The decisions were taken by the Economic Coordination Committee (ECC) of the cabinet, which also formed a committee to negotiate a settlement with Asia Petroleum Limited, a joint venture involving the Pakistani government and foreign firms.
According to a statement issued by the Ministry of Finance, the ECC meeting reviewed multiple proposals and summaries submitted by various ministries and divisions. These included requests for technical supplementary grants, along with consideration of key policy and administrative matters. The approval of roughly Rs24 billion in supplementary grants reflects a continued reliance on additional funding during the fiscal year, a trend that has drawn criticism in the past, including from the International Monetary Fund, over weaknesses in budget planning.
The ECC approved a supplementary grant of Rs7.1 billion for the Ministry of Defence. This included Rs2 billion for discretionary projects in Punjab under the Sustainable Development Goals Achievement Programme. On separate summaries submitted by the Defence Division, the committee also approved a further supplementary grant of Rs5.1 billion for defence services to support capacity enhancement, infrastructure development, community engagement initiatives and cybersecurity measures. The ECC decided that this amount would be released in phases and, due to its recurring nature, would be incorporated into the regular defence budget from the next financial year.
For the current year, the National Assembly has already approved Rs2.55 trillion as the defence budget, though additional funds are often provided outside the regular allocation for specific requirements.
The ECC also considered a proposal related to the establishment of Digital Enforcement Stations by the Federal Board of Revenue along the Indus, Hub and Balochistan rivers, in line with a decision taken by the prime minister in September 2024. Against a proposed supplementary grant of Rs10 billion, the committee approved an allocation of Rs3 billion for the third quarter, with the remaining amount to be released in the fourth quarter. Despite reservations initially raised by the Ministry of Finance, the funds were ultimately approved. The move comes despite continued concerns over the FBR’s ability to meet revenue targets despite repeated injections of funds for infrastructure and human resource improvements.
Additional approvals included a technical supplementary grant of Rs323 million for the provision of 15 coasters for the Directorate General of Special Education to facilitate transport for special children enrolled at the Autism Centre of Excellence in Islamabad. The centre is designed to serve at least 300 children with autism spectrum disorder. The ECC also approved Rs3.7 billion for Public Sector Development Programme projects aimed at improving digital connectivity, strengthening IT infrastructure, promoting e-governance and supporting the ICT ecosystem.
The committee further approved Rs700 million out of a requested Rs1 billion for the Ministry of Information’s Film and Drama Finance initiative, subject to six-monthly reporting and clearly defined performance indicators to ensure transparent utilisation of funds.
On the energy front, the ECC reviewed the future of Asia Petroleum Limited’s pipeline and decided to constitute a negotiating committee to develop a way forward by January 31. The committee will assess settlement terms, ownership issues and alternative uses of the pipeline, which was established in 1994 with World Bank assistance and supplies furnace oil to Hubco’s power plant.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.