ECC greenlights grants worth Rs227bn

December 19, 2025 (MLN):   The Economic Coordination Committee (ECC) of the Cabinet approved a total of around Rs227.6 billion in additional funds and Technical Supplementary Grants for various financial, development, and social sector initiatives for the current financial year 2025-26.

These allocations cover education, youth skill development, housing, tourism, power sector support, humanitarian assistance, and defence sector projects, which showed the Committee’s commitment to sustainable development, energy efficiency, and social welfare, according to a press release issued.

The ECC met under the chairmanship of Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb. The meeting included Dr. Imtiaz Ahmad, Chief Economist, Planning, Development and Special Initiatives Division, along with the Federal Ministers for Power, Petroleum, Commerce, Planning, Development and Special Initiatives, National Food Security and Research, and Investment, as well as federal secretaries and senior officials from relevant ministries, divisions, departments, and regulatory bodies.

During the meeting, Dr. Imtiaz Ahmad presented an overview of the current economic situation, highlighted improved inflation trends and food security conditions.

Headline inflation stood at 4.1% in July and 3% in August, with temporary increases in September and October due to flood-related supply disruptions.

By November, inflation moderated to 6.1%, bringing the cumulative average for July–November to 5.0%, significantly lower than 7.9% in the same period last year.

The improvement was attributed to prudent fiscal management, effective price stabilization measures, and close market monitoring.

Weekly Sensitive Price Indicator (SPI) data also showed declining prices in 10 out of 51 essential commodities, providing relief to consumers.

On the funding front, the ECC approved Rs5,760.27million for the Federal Education and Professional Training Division to establish Danish Schools in Azad Jammu and Kashmir, Gilgit-Baltistan, and Balochistan, and for the Prime Minister’s Youth Skill Development Programme through NAVTTC. The Committee advised exploring public-private partnership models for greater sustainability.

The Ministry of Housing and Works received Rs5,190m for execution of development schemes under the SDGs Achievement Programme in Sindh and Khyber Pakhtunkhwa.

The Ministry of Inter-Provincial Coordination was allocated Rs170.4m for the Pakistan Tourism Development Corporation (PTDC), with directives to prepare a comprehensive business plan aligned with national tourism strategy and reforms for state-owned enterprises.

The ECC also approved a revision of eligibility criteria for the Prime Minister’s Fan Replacement Programme to enhance energy efficiency, alongside Rs6.35bn for SDGs schemes in Punjab, ICT, Sindh, and Khyber Pakhtunkhwa, and Rs200bn for investment in DISCOs to address cash flow constraints in the power sector.

Addressing humanitarian concerns, Rs4.77bn was approved for 945 deserving families of missing persons, as identified by the Commission of Inquiry on Enforced Disappearances.

Additionally, Rs79m and Rs10.82m were sanctioned for maintenance of helicopters of Frontier Corps Balochistan (North) and Pakistan Rangers (Sindh), respectively.

For infrastructure, the ECC approved construction of 104 additional family suites for Members of Parliament, including servant quarters, and directed the Capital Development Authority to submit a comprehensive asset maintenance plan.

In the defence sector, Rs40m was allocated for SDGs-related schemes, and Rs250m for the operationalization of King Hamad University of Nursing and Allied Medical Sciences.

The Committee emphasized that continued policy coordination, strengthened monitoring mechanisms, and prudent fiscal management would further support economic stability, inflation containment, and sustainable development in the coming months.

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