ECC approves Rs40bn+ in TSGs, unlocks key development spending

June 06, 2026 (MLN): The Economic Coordination Committee (ECC) on Friday approved a series of technical supplementary grants (TSGs), development allocations, and policy measures involving more than Rs40 billion, while also clearing key proposals related to Pakistan State Oil (PSO), refinery sector reforms, and infrastructure development.

The meeting, chaired by Finance Minister Senator Muhammad Aurangzeb, sanctioned Rs7.03bn under the Sustainable Development Goals Achievement Programme (SAP) to ensure continuity of ongoing development schemes, avoid project cost overruns, and support timely completion of approved initiatives.

In the defence sector, the committee approved a TSG of Rs10.15bn for the Pakistan Navy’s Hangor submarine project under the Revised Armed Forces Development Plan (RAFDP)-2030.

The ECC also cleared multiple funding requests from the Ministry of Interior and Narcotics Control. These included Rs692.9m for security arrangements linked to the Islamabad Peace Talks.

Rs241m for compensation payments related to the suicide bombing at Imam Bargah Khadijah-tul-Kubra in Islamabad.

Rs528m for operational requirements of the Pakistan Land Ports Authority.Rs800 million for procurement of Fast Patrol Boats and related infrastructure for the Pakistan Coast Guards.

Rs1.88bn for the expansion of the Safe City Islamabad project. Rs150m for operational needs of the National Counter Terrorism Authority (NACTA). And Rs413.9m for security-related expenses associated with the Reko Diq project.

The committee appreciated the successful conduct of the Islamabad Peace Talks and acknowledged the efforts of institutions involved in ensuring security and logistical arrangements.

For the information sector, the ECC approved the release of Rs733m to Pakistan Television Corporation (PTVC) to meet employee salary obligations for June 2026.

Meanwhile, the Ministry of Information Technology and Telecommunication secured approval for a Rs183.5m TSG in favour of the Special Communication Organization (SCO) to establish telecom sites and communication towers in District Shigar, Gilgit-Baltistan, aimed at enhancing connectivity in remote regions.

The ECC also sanctioned Rs119.9 million for the Ministry of Parliamentary Affairs to cover employee-related expenditures resulting from revised salaries and allowances of Parliamentary Secretaries during FY26.

In the infrastructure segment, the committee approved the transfer of development funds amounting to Rs8.76 billion to Pakistan Infrastructure Development Company Limited (PIDCL) for the Karachi and Hyderabad Urban Infrastructure Development Packages.

Another Rs2.84bn under SAP was approved for development projects in Khyber Pakhtunkhwa.

The ECC further approved a Rs1.3bn TSG for the Public Sector Development Programme (PSDP) project titled “Modernization and Up-gradation of Pakistan Mint (Phase-II-A).”

Additionally, a grant of Rs4.38 billion was sanctioned for the Government of Gilgit-Baltistan to support current expenditures and priority development initiatives.

The committee also approved a revised policy governing Budget Honorarium and expanded eligibility to include the Ministry of Commerce, Ministry of Law and Justice, and the Office of the Accountant General Pakistan Revenues (AGPR) in recognition of their role in the federal budget preparation process.

Separately, the ECC approved the FY26 budget estimates of the Intellectual Property Organization (IPO)-Pakistan, comprising projected expenditures of Rs914.7m and anticipated revenue receipts of Rs918 million.

The committee also endorsed a proposal from the Ministry of Maritime Affairs to ensure operational continuity of Engro Vopak Terminal Limited (EVTL).

In the energy sector, the ECC approved continuation of syndicated running finance facilities for Pakistan State Oil (PSO) with a financing ceiling of Rs100bn.

It also cleared a revised framework concerning the Deed of Settlement with Cnergyico PK Limited under the Pakistan Oil Refining Policy 2023.

The revised arrangement is intended to address the long-standing Late Payment Surcharge (LPS) issue while facilitating refinery upgrades and future investments.

Among additional agenda items, the committee approved Rs29.9m for the Economic Affairs Division to meet rental obligations for official residential accommodation of entitled officers and staff.

It also sanctioned Rs30 million for the extension and upgradation of the Jamia Masjid located within Parliament House, Islamabad.

The meeting was attended by federal ministers, senior government officials, and representatives from relevant ministries, divisions, and regulatory bodies.

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