ECC approves Rs358bn grants for defense, water projects

November 04, 2026 (MLN): The Economic Coordination Committee (ECC) of the Cabinet has approved supplementary grants worth billions of rupees for defense services, water sector infrastructure and other key initiatives, while endorsing several measures related to imports, energy supply and youth financing.

The ECC, chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb at the Finance Division, considered 11 agenda items submitted by various ministries and divisions.

The committee approved three Technical Supplementary Grants (TSGs) submitted by the Defense Division, including Rs54 billion for ongoing Defense Services projects, Rs1.094 billion for the induction of a Lineage L-1000 aircraft and Rs29.139bn for Project Istaqlal.

It also approved a TSG of Rs3.71 million for the helicopter maintenance requirements of Frontier Corps Balochistan (North), on a summary submitted by the Interior and Narcotics Control Division.

For the water sector, the ECC sanctioned a TSG of Rs275 billion to support key infrastructure projects under the Ministry of Water Resources. It also approved Rs1 billion for the gasification of villages located within a five-kilometre radius of gas production fields during FY2026-27.

The committee further approved the transfer of Rs15.625 billion in savings generated through austerity and fuel conservation measures to the Prime Minister's Austerity Fund 2026.

In another decision, the ECC endorsed revisions to the tiers and bank rate of the Prime Minister's Youth Business and Agriculture Loan Scheme (PMYBALS), aimed at expanding access to affordable financing and encouraging youth entrepreneurship and employment.

On the import front, the committee approved restrictions on the import of camera-enabled smart glasses and recommended that provincial governments and the Islamabad Capital Territory formulate appropriate workplace regulations governing their use.

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

Additionally, the committee allowed relaxation in the applicable Exploration and Production (E&P) Rules for the extension and renewal of 89 petroleum rights, subject to fulfilment of prescribed conditions.

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, the Chairman of the Prime Minister's Youth Programme, federal secretaries and senior government officials.

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