Pakistan’s Economic Coordination Committee (ECC) of the Cabinet has approved technical supplementary grants totalling approximately Rs41 billion for government institutions, infrastructure projects and other public-sector initiatives. The approved funding includes Rs11.329 billion for completing the closure 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). Additional allocations have been approved for the Federal Board of Revenue’s transformation plan, small business development, election preparations, agricultural training and other government programmes. Alongside the financial approvals, the committee cleared a State Bank of Pakistan (SBP) framework designed to improve access to financing for small enterprises and farmers. However, a proposal concerning outstanding receivables owed to the Pakistan Agricultural Storage and Services Corporation (PASSCO) by provincial governments was deferred for further consultation.
The meeting took place at the Finance Division under the chairmanship of Finance and Revenue Minister Senator Muhammad Aurangzeb. According to the official press release, the committee considered 17 agenda items submitted by various ministries and government divisions. Among the largest approved allocations, the Rs11.329 billion grant for the Utility Stores Corporation is intended to meet its immediate financial requirements and facilitate completion of the closure process. The Rs10 billion allocation for the Ministry of Railways will provide budgetary support for the Thar Coal Rail Connectivity Project, which is intended to facilitate the use of locally available coal for power generation and other industrial purposes. Meanwhile, the Rs8 billion approved for P3A will support infrastructure projects developed through public-private partnerships, an approach that brings government institutions and private-sector participants together to develop and finance projects.
The committee also approved funding for tax administration reforms and small business development. Pakistan Revenue Automation Limited received Rs4 billion for the FBR Transformation Plan, while the Small and Medium Enterprises Development Authority (SMEDA) was allocated Rs2 billion for its approved business plan. These allocations cover initiatives associated with revenue administration and support for smaller businesses. The ECC also approved Rs1.666 billion for the Ministry of Education to train 1,000 agricultural professionals in China, while the Pakistan Sports Endowment Fund Scheme, 2025, received approximately Rs934.481 million. In addition, 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).
Election preparations accounted for another portion of the approved funding. The Election Commission of Pakistan (ECP) had requested Rs17.873 billion to procure non-sensitive materials for local government elections in Punjab, Khyber Pakhtunkhwa, Islamabad Capital Territory and cantonment boards. The ECC approved the immediate release of Rs2 billion against this request. A separate allocation of Rs596.18 million was approved for the reallocation of surrendered funds associated with local government elections in Islamabad Capital Territory, by-elections in Sindh and Balochistan, and delimitation activities in Punjab. These approvals address specific election-related requirements, although the immediate release of Rs2 billion remains distinct from the larger amount originally sought by the Election Commission.
Beyond supplementary funding, the ECC approved the SBP’s framework to bring Agency Financial Institutions (AFIs) within the government’s existing risk coverage schemes for small enterprises and small farmers. The framework will operate through wholesale and agency arrangements, using the outreach of eligible microfinance institutions and non-banking financial institutions to improve access to financing. The committee also approved an addendum to the Second Supplemental Trust Deed of the Credit Guarantee Trust Fund (CGTF), intended to improve the use of the existing credit guarantee facility for affordable housing finance. These decisions address financing access for businesses, farmers and housing borrowers through established financial institutions and risk-sharing mechanisms. Their implementation will determine how effectively the arrangements extend financing to the intended beneficiaries.
The ECC approved additional measures covering agricultural pricing, customs policy and public-sector financial management. These included Minimum Indicative Prices for the 2026 tobacco crop and a revision of cess rates for fiscal year 2026-27. The committee also cleared an amendment to SRO 693(I)/2006 concerning additional customs duty on imported tyres that are manufactured locally. The measure is aimed at promoting domestic manufacturing by addressing the applicable customs duty arrangements for locally produced tyres. Separately, the ECC approved a Commerce Ministry proposal to invest Export Development Fund resources in government securities. These decisions extend beyond the main supplementary grant package, covering policies that affect agricultural producers, domestic industry and the management of public funds.
The committee deferred a proposal to adjust PASSCO’s outstanding receivables from provincial governments through deductions at source. It directed that the matter be presented again after further consultation with relevant stakeholders, leaving the proposed adjustment pending additional discussions. 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. Federal secretaries and senior officials from the relevant ministries, divisions and regulatory authorities also participated. The decisions collectively cover government restructuring, infrastructure development, revenue administration, election funding, financing access and industrial policy, with implementation to proceed through the responsible institutions under the applicable rules and approved arrangements.
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