The Economic Coordination Committee (ECC) approved Rs275 billion in technical supplementary grants for key water resources projects on Wednesday. It also cleared Rs54 billion for ongoing defence services schemes and Rs29.14 billion for Project Istehkam. The meeting in Islamabad was chaired by Finance Minister Muhammad Aurangzeb and considered an 11-point agenda.
The agenda covered financial, development and technical supplementary grants, along with decisions on youth loans, petroleum exploration, gas supply and imports.
Grants for water, defence and Project Istehkam
The Rs275 billion grant is meant for important projects of the Ministry of Water Resources. According to the committee, it will support water infrastructure development and the completion of ongoing schemes.
A separate Rs54 billion technical grant will go to ongoing projects of defence services. For Project Istehkam, the committee approved Rs29.139 billion.
The ECC also signed off on an extra Rs1.094 billion for bringing a Lineage 1000 aircraft into service. Another Rs37.1 million was cleared for repairing a helicopter belonging to Frontier Corps Balochistan North.
Youth loan revisions and austerity savings
The committee endorsed proposed changes to loan tiers and bank rates under the Prime Minister’s Youth Business and Agriculture Loan Scheme. The official statement said the revisions are designed to make loans easier for young people to obtain, while encouraging business activity and job creation.
The ECC also approved moving Rs15.625 billion in savings, generated through austerity and fuel conservation measures, into the Prime Minister’s Austerity Fund 2026.
Smart glasses curbs, gas supply and petroleum rights
The committee approved restrictions on importing smart glasses that have cameras built in. It recommended that provincial governments and the Islamabad administration frame official rules governing how such devices are used.
Gas supplies to the SNGPL-based fertiliser plants Fatima Fert and Agritech will continue until December 31. That continuation depends on the availability of the required energy resources.
Exploration and production rules were also relaxed to allow 89 petroleum rights to be extended and renewed, provided prescribed conditions are met. The ECC further approved a Rs1 billion technical grant to bring gas to villages within five kilometres of gas-producing fields during the current fiscal year. The funding is expected to expand gas infrastructure and improve access to natural gas for nearby communities.
Cabinet committee reviews surplus sugar exports
Separately, a cabinet committee on exporting surplus sugar, chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar, reviewed ongoing measures and administrative, technical and procedural issues linked to exports. The panel examined existing sugar stocks and domestic consumption needs. It agreed that exports must not disturb price stability in the local market.
Dar said exporting surplus agricultural commodities could strengthen the farm economy and help Pakistan earn valuable foreign exchange. He stressed, however, that protecting domestic consumers remains the government’s top priority.
He directed authorities to keep strategic sugar reserves to meet national requirements. He also said exports must not push retail prices upward. Federal ministers for National Food Security and Research and Economic Affairs attended the meeting.
