ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved a Technical Supplementary Grant amounting to Rs. 200 billion under the head of the government of Pakistan’s investment in DISCOs’ equity to address cash flow constraints in the power sector.
Minister for Finance and Revenue Muhammad Aurangzeb chaired the Committee meeting and reviewed the overall economic situation, with particular focus on inflation trends and food security, before approving a wide range of financial, development, and social sector proposals for the current financial year 2025-26.
Dr. Imtiaz Ahmad, Chief Economist, Planning, Development, and Special Initiatives Division, presented a detailed overview of the prevailing economic conditions. The Committee was briefed that the overall inflation situation has shown marked improvement during the ongoing fiscal year, reflecting enhanced price stability and effective macroeconomic management.
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Headline inflation remained at relatively low levels in the initial months of the fiscal year, standing at 4.1 percent in July and 3.0 percent in August. Although temporary pressures emerged during September and October due to flood-related supply disruptions, inflation moderated subsequently and declined to 6.1 percent in November, indicating a clear easing of price pressures.
The committee noted that cumulative inflation for the period July–November averaged 5.0 percent, significantly lower than 7.9 percent recorded during the corresponding period of the previous year. This improvement was attributed to prudent fiscal management, effective price stabilization measures, and close market monitoring, while remaining within the government’s budgetary projections.
Weekly price monitoring through the Sensitive Price Indicator (SPI) was also reviewed, which showed a stabilizing trend in essential commodities. Recent data indicated that prices of 10 out of 51 essential commodities declined on a week-on-week basis, providing tangible relief to consumers.
The Committee further observed that market supply conditions are gradually normalizing as post-flood agricultural cycles progress, and expressed confidence that continued policy coordination and strengthened monitoring mechanisms would further support inflation containment in the coming months. Following the economic briefing, the ECC considered and approved various agenda items.
The ECC approved a Technical Supplementary Grant of Rs. 6.358 billion in favour of the Power Division for execution of SDGs Achievement Programme schemes in Punjab, Islamabad Capital Territory, Sindh and Khyber Pakhtunkhwa, along with another Technical Supplementary Grant amounting to Rs. 200 billion under the head of Government of Pakistan investment in DISCOs’ equity to address cash flow constraints in the power sector.
The Committee approved additional funds amounting to Rs. 5,760.270 million, proposed by the Federal Education and Professional Training Division, through a Technical Supplementary Grant for the establishment of Danish Schools in Azad Jammu and Kashmir, Gilgit-Baltistan, and Balochistan, as well as for implementation of the Prime Minister’s Youth Skill Development Programme through NAVTTC.
The Committee, however, advised the Division to explore public-private partnership models to enhance sustainability, noting that continued reliance on regular government funding may be challenging in the future. The ECC also approved a Technical Supplementary Grant of Rs. 5,190.000 million, proposed by the Ministry of Housing and Works, in favour of PIDCL for execution of development schemes under the SDGs Achievement Programme in the provinces of Sindh and Khyber Pakhtunkhwa.
Copyright Business Recorder, 2025
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