Committee cuts cabinet division’s original demand by nearly half and orders detailed assessment of vehicle requirements

The Economic Coordination Committee (ECC) has approved a Rs6.6 billion technical supplementary grant for the purchase of 30 bulletproof

ISLAMABAD: The Economic Coordination Committee (ECC) has approved a Rs6.6 billion technical supplementary grant for the purchase of 30 bulletproof vehicles to facilitate the security and transportation arrangements for visiting heads of state and other high-level dignitaries expected to attend the Shanghai Cooperation Organisation (SCO) Summit in Pakistan in September 2027.

According to sources familiar with the matter, the Cabinet Division had initially requested approximately Rs12.6 billion for the procurement of more than 50 bulletproof vehicles for the summit. However, after reviewing the demand, the ECC reduced the proposed allocation by almost half and approved funding for 30 vehicles.

The meeting was chaired by Finance Minister Muhammad Aurangzeb, who directed the Cabinet Division to undertake a comprehensive assessment of its actual requirements before submitting any additional financial demand.

The committee’s decision reflects an effort to balance the security requirements associated with hosting a major international summit with the government’s broader emphasis on controlling public expenditure. The SCO summit is expected to bring together heads of state, senior government officials and other international representatives, requiring extensive security, protocol and logistical arrangements.

The Cabinet Division is now expected to reassess the number and specifications of vehicles required for the event and determine whether additional procurement will be necessary. Any further financial request would likely be considered after the division completes the assessment and provides justification for additional expenditure.

The approval comes as the government continues to make significant financial decisions involving debt management, energy-sector payments and public expenditure.

Pakistan Raises $3 Billion Through Eurobonds

Separately, sources familiar with the matter said that Pakistan has raised $3 billion through Eurobonds, with the funds reportedly being secured through 5.5-year and 10-year bonds carrying interest rates of 7.5% and 7.9%, respectively.

According to the sources, the proceeds are intended to help retire short-term Saudi debt, forming part of the government’s broader efforts to manage its external financing requirements and improve the structure of its outstanding obligations.

The borrowing comes amid continued efforts by Pakistan to secure foreign financing and manage pressure on its external account while meeting existing debt-servicing obligations.

Rs2.935 Trillion Paid to IPPs

Meanwhile, sources in the Ministry of Energy said that the government has paid approximately Rs2.935 trillion to Independent Power Producers (IPPs) over the past 11 months.

Of the total amount, around Rs1.565 trillion was paid as capacity payments, according to the sources.

The scale of these payments is likely to renew debate over Pakistan’s electricity tariff structure and the financial burden associated with capacity payments. The government has been facing pressure to reduce electricity costs for consumers while addressing the financial challenges affecting the power sector.

The latest figures highlight the competing financial pressures facing the government as it prepares for major international events such as the SCO summit while simultaneously managing debt obligations, energy-sector payments and demands for greater fiscal discipline.