The Economic Coordination Committee (ECC) approved Rs11.329 billion on Thursday to address the immediate financial needs and finalize the closure process of the Utility Stores Corporation (USC). Additionally, the committee allocated Rs10 billion for the Thar coal rail connectivity project aimed at enhancing transportation of locally mined coal for power generation and industrial use.
Chaired by Finance Minister Senator Muhammad Aurangzeb, the ECC meeting reviewed a 17-point agenda submitted by various ministries and divisions. The Rs10 billion for the Thar coal rail project is intended to improve linkages between the Thar coal fields and fuel consumers, facilitating efficient coal transport.
Furthermore, Rs8 billion was approved as a technical supplementary grant for the Public-Private Partnership Authority to support infrastructure project preparation and implementation through public-private partnerships. The committee also sanctioned Rs4 billion for Pakistan Revenue Automation Limited (PRAL) to execute the Federal Board of Revenue’s reform plan, part of efforts to modernize tax administration and strengthen revenue systems.
To support small businesses and farmers, the ECC endorsed a new financing mechanism developed by the State Bank of Pakistan. This allows microfinance institutions and other non-bank financial entities to participate in the government’s existing credit guarantee schemes, broadening access to credit for borrowers outside the traditional banking sector.
The committee also approved expanding the current credit guarantee fund to facilitate affordable housing finance for low-income households, aiming to enhance the effectiveness of the loan guarantee facility for low-cost housing.
For electoral processes, Rs596.18 million was approved for local government elections in Islamabad, by-elections in Sindh and Balochistan, and delimitation in Punjab. Separately, Rs2 billion was released immediately for procuring equipment needed for local government elections in Punjab, Khyber Pakhtunkhwa, Islamabad, and cantonment boards nationwide.
In the agricultural sector, the ECC sanctioned approximately Rs1.666 billion for a short-term training program in China, designed to train 1,000 Pakistani agriculture experts in modern technologies, research, and innovation.
Supporting sports development, the committee approved around Rs934.5 million to activate the Pakistan Sports Endowment Fund. Additionally, Rs150 million was allocated to cover expenses related to Pakistan’s participation in the COP31 climate conference held in Türkiye.
For government infrastructure, Rs300 million was approved for essential repairs and maintenance at the Prime Minister’s Office and the Prime Minister’s Staff Colony through the Capital Development Authority. The ECC also approved revising the minimum indicative prices for the 2026 tobacco crop and cess rates for the fiscal year 2026-27.
The committee deferred a proposal on directly deducting Pakistan Agricultural Storage and Services Corporation’s (PASSCO) outstanding dues from provincial governments, pending further stakeholder consultations.
In support of local manufacturing, an amendment to the SRO was approved to impose additional customs duty on imported tyres, aiming to promote the domestic tyre industry and local production.
Lastly, the ECC approved utilizing Export Development Fund resources for investment in government securities under an approved mechanism to ensure better fund utilization and strengthen financial stability.
These decisions reflect the government’s continued reliance on the ECC as the primary forum for approving supplementary financing, economic policies, and funding requirements for ministries and public-sector entities.
