ECC approves key grants for security, defence projects, and structural reforms

November 18, 2025 (MLN):  The Economic Coordination Committee (ECC) of Pakistan’s Cabinet approved over Rs 50 bn in Technical Supplementary Grants (TSGs) on Monday to fund defence projects, border security operations, and internal security initiatives.

The decisions, taken at the Finance Division under Finance Minister Senator Muhammad Aurangzeb, aim to bolster national defence capabilities and maintain law and order across the country, said a press release issued.

The Defence Division received Rs 50 bn to support a range of approved projects for the Defence Services, while the Ministry of Interior & Narcotics Control secured Rs 841.56 m for border control operations and internal security. An additional Rs 100.3 m was approved for the maintenance and repair of defence equipment used by the Federal Civil Armed Forces.

In another key decision, the ECC approved the formation of a Special Purpose Vehicle (SPV) to oversee the structured winding down of the Pakistan Agricultural Storage & Services Corporation (PASSCO). The SPV will have an initial paid-up capital of Rs 1 m, with authorized capital adjusted according to operational requirements.

The Committee also greenlit proposals from the Petroleum Division aimed at extending licence periods and assigning working interests in offshore oil and gas blocks, a move expected to encourage foreign investment and boost exploration activities in Pakistan’s energy sector.

Federal Ministers Ali Pervaiz Malik (Petroleum), Ahsan Iqbal (Planning & Development), and Special Assistant to the Prime Minister Haroon Akhtar Khan attended the meeting, along with federal secretaries and senior officials from relevant ministries.

The ECC’s approvals reflect the government’s focus on strengthening security infrastructure, managing food storage institutions, and incentivizing private investment in the petroleum sector, which could impact energy exploration and defence spending in the coming fiscal period.

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