ECC approves around Rs41bn in supplementary grants

October 09, 2026 (MLN): The Economic Coordination Committee (ECC) has approved technical supplementary grants (TSGs) totalling about Rs41bn for a range of bodies and projects, including Rs11.329bn to close down the Utility Stores Corporation (USC), Rs10bn for the Thar Coal Rail Connectivity Project and Rs8bn for the Public Private Partnership Authority (P3A).

It also cleared a State Bank of Pakistan financing framework to widen small enterprises’ and farmers’ access to finance, and deferred a proposal on PASSCO’s receivables from provinces.

The Economic Coordination Committee (ECC) of the Cabinet met at the Finance Division under the chairmanship of Finance and Revenue Minister Senator Muhammad Aurangzeb and considered 17 agenda items from various ministries and divisions, said a press release issued.

On access to finance, the ECC approved the central bank’s framework to bring Agency Financial Institutions (AFIs) under the government’s existing risk coverage schemes for small enterprises and small farmers through wholesale and agency arrangements, using the outreach of eligible microfinance and non-banking institutions.

It also approved an addendum to the Second Supplemental Trust Deed of the Credit Guarantee Trust Fund (CGTF) to make better use of the existing credit guarantee facility for affordable housing finance.

The USC grant meets the corporation’s immediate funding needs and facilitates completion of its closure, while the P3A allocation will support infrastructure projects through public-private partnerships.

The Thar rail grant provides budgetary cover to help use indigenous coal for power generation and other industries.

The Election Commission of Pakistan (ECP) had also sought Rs17.873bn for procuring non-sensitive materials for local government elections in Punjab, Khyber Pakhtunkhwa, Islamabad Capital Territory (ICT) and cantonment boards. The committee approved the immediate release of Rs2bn of it.

The separate Rs596.18mn covers surrendered funds for local government elections in ICT, bye-elections in Sindh and Balochistan, and delimitation in Punjab.

The ECC also approved Minimum Indicative Prices (MIPs) for the 2026 tobacco crop and a revision of cess rates for 2026-27.

It approved an amendment to SRO 693(I)/2006 on additional customs duty on imports of tyres that are made locally, aimed at promoting domestic manufacturing.

A Commerce Ministry summary to invest Export Development Fund resources in government securities was also cleared.

A proposal to adjust PASSCO’s outstanding receivables from provincial governments through at-source deductions was deferred, with directions to bring it back after further consultation with stakeholders.

The meeting was attended by Federal Minister for Investment, Mr Qaiser Ahmed Sheikh; Federal Minister for Commerce, Mr Jam Kamal Khan; Federal Minister for Power, Sardar Awais Ahmad Khan Leghari; and Federal Minister for Education and Professional Training, Dr Khalid Maqbool Siddiqui, along with Federal Secretaries and senior officials from the relevant Ministries, Divisions and regulatory authorities.

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