Rs54bn TSG for ongoing defence schemes: ECC approves Rs275bn TSG for key water projects

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved technical supplementary grants of Rs275 billion for key water sector projects and Rs54 billion for ongoing defence projects, besides clearing a series of technical supplementary grants worth billions of rupees to meet operational and development requirements.

The ECC met under the chairmanship of Federal Minister for Finance and Revenue, Muhammad Aurangzeb. The Committee considered 11 agenda items submitted by various Ministries and Divisions.

The ECC approved three summaries submitted by the Defence Division for separate Technical Supplementary Grants (TSGs), comprising Rs. 54 billion for various ongoing Defence Services projects, another Rs. 1.094 billion for the induction of a Lineage L-1000 aircraft and Rs. 29.139 billion for Project Istaqlal. The approvals are aimed at meeting essential operational requirements and supporting national security priorities.

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On a summary submitted by the Interior and Narcotics Control Division, the Committee also approved a TSG of Rs. 3.71 million to meet the helicopter maintenance requirements of the Frontier Corps Balochistan (North).

The ECC also approved the proposed revision in the tiers and bank rate of the Prime Minister’s Youth Business and Agriculture Loan Scheme (PMYBALS). The revised structure aims to expand access to affordable financing and promote youth entrepreneurship and employment.

The Committee also approved the transfer of Rs. 15.625 billion in savings generated through austerity and fuel conservation measures to the Prime Minister’s Austerity Fund 2026, reinforcing the Government’s commitment to fiscal discipline and prudent management of public resources.

The ECC further approved a TSG of Rs. 275 billion for important water sector projects under the Ministry of Water Resources. The allocation will support the development of key water infrastructure and help advance the implementation of ongoing projects.

On a summary submitted by the Commerce Division, the Committee approved restrictions on the import of camera-enabled smart glasses. The Committee also recommended that provincial governments and the Islamabad Capital Territory develop appropriate workplace regulations to govern the use of such devices.

The ECC approved the continuation of gas supply to FatimaFert and Agritech, the two SNGPL-based urea manufacturing plants, up to December 31, 2026, subject to the availability of the required energy supply.

The Committee also approved relaxation in the applicable Exploration and Production (E&P) Rules for the extension and renewal of 89 petroleum rights, subject to fulfilment of the prescribed conditions.

The ECC further approved a TSG of Rs. 1 billion for the gasification of villages falling within a five-kilometre radius of gas production fields during FY 2026-27. The approval will facilitate gas infrastructure development and improve access to natural gas in communities near producing fields.

The meeting was attended by Federal Minister for Power, Sardar Awais Ahmad Khan Leghari; Federal Minister for Petroleum, Ali Pervaiz Malik; Minister of State for Finance Bilal Azhar Kiyani; and Chairman of the Prime Minister’s Youth Programme, along with Federal Secretaries and senior officials from the relevant Ministries, Divisions and departments.

Copyright Business Recorder, 2026