ECC greenlights Rs40bn grants, boosts bureaucrat benefits

The Economic Coordination Committee (ECC) of the federal cabinet has

The Economic Coordination Committee (ECC) of the federal cabinet has approved more than Rs40 billion in supplementary grants ahead of the Budget 2026–27. It also cleared a Rs100 billion financing facility for Pakistan State Oil (PSO).

The meeting was chaired by Finance Minister Muhammad Aurangzeb. Several key financial and administrative decisions were taken during the session.

Officials said PSO is facing severe liquidity pressure. The company has receivables of over Rs900 billion from other state-owned enterprises. Most of these dues are from the gas sector.

To manage the situation, the ECC approved a syndicated financing facility. The arrangement is backed by government guarantees. It will help PSO maintain fuel imports and avoid supply disruptions.

The committee also approved expansion of special honoraria for bureaucrats. These benefits apply to officials involved in budget preparation work. The facility has now been extended to more ministries and departments.

The fiscal impact of the expanded allowances was not disclosed.

The ECC also sanctioned Rs7.026 billion under the Sustainable Development Goals Achievement Programme. The funds will support ongoing development projects. Officials said the aim is to avoid delays and rising costs.

In another major decision, Rs10.15 billion was approved for the Pakistan Navy’s Hangor Project. The allocation is part of defence modernisation efforts.

Multiple grants were also cleared for the Ministry of Interior. These include funding for security operations in Islamabad. Funds were also approved for counter-terrorism efforts and maritime security.

Additional allocations were approved for Safe City Islamabad expansion. Compensation was also approved for victims of a past suicide bombing incident.

The ECC also approved funds for Pakistan Television Corporation to pay salaries. The Pakistan Mint also received funding for its upgrade and modernisation plan.

Development funds were cleared for infrastructure projects in Karachi, Hyderabad, and Khyber Pakhtunkhwa. These include urban development packages and parliamentary schemes.

The committee also approved Rs4.377 billion for the Gilgit-Baltistan government. The funds are meant to support current expenditures ahead of elections.

In another matter, the ECC reviewed petroleum levy recovery issues involving a private refinery. A committee was reconstituted to recover around Rs60 billion in outstanding dues.

Officials said the revised structure aims to avoid conflicts of interest. It will also strengthen recovery efforts.

The ECC’s decisions come at a time of tight fiscal space. Authorities continue to rely on supplementary grants and borrowing mechanisms to manage financial pressures before the upcoming budget.