ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved over Rs41 billion in technical supplementary grants (TSGs) for various ministries and institutions, with a major share going towards the closure of Utility Stores Corporation (USC).
The committee approved Rs11.329 billion for the USC, while also allocating Rs10 billion for the Thar Coal Rail Connectivity Project and Rs8 billion for the Public Private Partnership Authority (P3A). Chaired by Finance Minister Muhammad Aurangzeb, the ECC considered 17 agenda items covering financing arrangements, development projects, infrastructure, institutional reforms and sectoral measures.
The Rs11.329 billion for the USC was approved on a proposal from the Industries and Production Division to meet the corporation’s immediate funding requirements and facilitate completion of its closure process.
READ MORE: Aurangzeb reviews progress on closure of PASSCO, USC
The ECC also approved Rs2 billion for the Small and Medium Enterprises Development Authority (SMEDA) to implement its approved business plan.
An additional Rs8 billion was sanctioned for the P3A on a proposal from the Privatisation Division. The funds will support the development and implementation of infrastructure projects through public-private partnership arrangements.
The Ministry of Railways was allocated Rs10 billion to provide budgetary cover for the Thar Coal Rail Connectivity Project. The project is aimed at facilitating the use of indigenous Thar coal for power generation and other industrial sectors.
The committee approved a financing framework developed by the State Bank of Pakistan (SBP) to bring Agency Financial Institutions (AFIs) under the government’s existing risk coverage schemes for small enterprises and small farmers.
The framework seeks to expand access to finance by using the outreach of eligible microfinance and non-bank financial institutions through wholesale and agency arrangements.
The ECC also approved an addendum to the Second Supplemental Trust Deed of the Credit Guarantee Trust Fund (CGTF), aimed at improving utilisation of the existing credit guarantee facility for affordable housing finance.
On a proposal from the Election Commission of Pakistan (ECP), the committee approved Rs596.18 million for the reallocation and revalidation of surrendered funds for local government elections in Islamabad, local government by-elections in Sindh and Balochistan, and delimitation activities in Punjab.
The ECC also considered the ECP’s request for Rs17.873 billion for procurement of non-sensitive material for local government elections in Punjab, Khyber Pakhtunkhwa, Islamabad and cantonment boards across the country.
It approved the immediate release of Rs2 billion through a technical supplementary grant.
The ECC approved Rs4 billion for Pakistan Revenue Automation (Pvt) Ltd (PRAL) to support its ongoing restructuring and implementation of the Federal Board of Revenue’s Transformation Plan.
On a proposal from the Revenue Division, it also approved an amendment to SRO 693(I)/2006 concerning the levy of additional customs duty on imported tyres that are manufactured locally. The measure is intended to promote domestic manufacturing.
The committee further approved a proposal from the Commerce Ministry to invest Export Development Fund resources in government securities under the approved framework. The move is intended to ensure productive utilisation of the fund’s resources and sustainable financial management.
The Capital Development Authority (CDA) was allocated Rs300 million to meet essential repair and maintenance expenditure relating to the Prime Minister’s Office and the Prime Minister’s Staff Colony during fiscal year 2026-27. The proposal was submitted by the Ministry of Interior and Narcotics Control.
The Ministry of Climate Change and Environmental Coordination was granted Rs150million to meet requirements relating to Pakistan’s participation in the 31st Session of the Conference of the Parties (COP31), scheduled to be held in Antalya, Turkiye.
The ECC also approved Rs934.481 million for the Pakistan Sports Endowment Fund Scheme, 2025, in favour of the Ministry of Inter-Provincial Coordination.
The allocation will support operationalisation of the fund under its approved framework and contribute to development of the national sports ecosystem.
Another Rs1.666 billion was approved for the Prime Minister’s initiative to provide short-term training in China to 1,000 agricultural professionals.
The initiative, proposed by the Ministry of Federal Education and Professional Training, is aimed at strengthening expertise in agricultural technology, innovation and research.
The ECC also approved the Minimum Indicative Prices for the 2026 tobacco crop and revision of cess rates for 2026-27, on a proposal from the Ministry of National Food Security and Research.
A separate proposal concerning adjustment of the Pakistan Agricultural Storage and Services Corporation’s (PASSCO) outstanding receivables from provincial governments through deductions at source was deferred.
The committee directed that the proposal be brought back after further consultation with the relevant stakeholders.
Copyright Business Recorder, 2026
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