ECC approves Rs494.56mn for Frontier Corps KP north infrastructure

February 04, 2025 (MLN): The Economic Coordination Committee (ECC) has approved the Ministry of Interior's proposal for the release of a technical supplementary grant (TSG) of Rs494.56 million to Frontier Corps Khyber Pakhtunkhwa (North) for the construction of barracks and check posts.

This was approved during a meeting of the ECC of the Cabinet, chaired by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb.

The ECC also approved a proposal by the Revenue Division for the release of a technical supplementary grant of Rs2.79 billion for the procurement of arms and ammunition components.

Nespak will be engaged as a design consultant for Digital Enforcement Stations (DES) and check posts, according to the press release issued.

The ECC further approved a summary submitted by the Revenue Division for the introduction of necessary policy interventions in the Export Facilitation Scheme (EFS) 2021 to plug revenue leakages without disturbing compliant exporters.

The Interior Division proposed the release of a Technical Supplementary Grant (TSG) of Rs1.792bn for the smooth conduct of Reko Diq project activities, as per the Memorandum of Understanding (MoU) and agreement with the Reko Diq Mining Company.

However, the Economic Coordination Committee (ECC) directed that the proposal be presented again in the next meeting with a clear breakdown of how the grant would be spent, as regular funds had already been allocated for current expenditures.

The Cabinet body considered and approved a summary by the Power Division seeking an amendment to the February 16, 2024, mediation agreement regarding claims of KE for tariff differential subsidy.

The Cabinet body also approved amendments related to the Karachi Water and Sewerage Board (KWSB) and K-Electric (KE) payables to different state-owned enterprises (CPPA/NTDC and SSGC).

The approval was granted with the proviso that the amendment would not lead to any increase in the tariff.

Finally, a proposal from the Intelligence Bureau Division for the provision of a TSG of Rs500mn was also considered and approved.

The Committee expressed concern over the rising prices of sugar, vegetables, and edible oil, particularly in light of declining prices in the international market.

The ECC directed the Ministry of Industries and Production and the Ministry of National Food Security & Research to collaborate with the National Price Monitoring Committee (NPMC).

They were instructed to report back within two weeks with measures to ensure the maintenance of strategic reserves of wheat, sugar, and pulses, as well as to improve the supply chains of essential items ahead of the holy month of Ramadan.

The meeting focused on reviewing trends in inflation and the prices of essential commodities, as presented by the Economic Advisor’s Wing of the Finance Division.

The proposed changes in the EFS include reducing the input utilization period, authorizing input based on production capacity/input-output ratio, and replacing insurance guarantees with bank guarantees.

Additionally, vendor facilitation controls will be implemented, samples will be drawn to ensure the utilization of imported input in exported goods, and the EFS facility will be withdrawn from importers of iron and steel scrap.

At the outset, the ECC conducted a monthly review of inflation trends as per its earlier decision.

The Cabinet body was informed that inflation during the first half of FY2025 (July-December) had decreased significantly to 7.2%, compared to 28.8% during the same period last year.

Additionally, inflation for December 2025 was recorded at 4.1%, a sharp reduction from 29.7% in December 2024.

This marked the lowest inflation rate in 80 months, largely due to exchange rate stability, prudent fiscal management, and improved supply arrangements of essential items across the country.

The ECC expressed satisfaction with the ongoing decline in the Sensitive Price Index (SPI) over the past few weeks.

However, the chair emphasized that the reduction in core inflation, average inflation, and downward price trends should translate into tangible relief for the common man.

Despite positive trends, the Committee expressed concern over the rising prices of sugar, vegetables, and edible oil, particularly in light of declining prices in the international market.

Furthermore, the ECC called upon Provincial Price Control Committees to enforce strict compliance with the price control mechanism, curb cartelization, and prevent undue profiteering to protect consumers from unfair price hikes.

The chair reaffirmed the government’s resolve and commitment to ensuring the availability of essential commodities at affordable prices for the people of Pakistan.

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