Rs275 billion approved for water projects, Rs83 billion for defence

The Economic Coordination Committee (ECC) of the Cabinet has approved Rs275 billion for major water sector projects and Rs83.139 billion

Islamabad:  The Economic Coordination Committee (ECC) of the Cabinet has approved Rs275 billion for major water sector projects and Rs83.139 billion for defence requirements, while also transferring Rs15.625 billion in savings from austerity and fuel conservation measures to the Prime Minister’s Austerity Fund 2026.

The decisions were taken at an ECC meeting held at the Finance Division on November 4, 2026, under the chairmanship of Finance Minister Senator Muhammad Aurangzeb. The committee considered 11 agenda items submitted by different ministries and divisions.

The largest single approval was Rs275 billion for important water sector projects under the Ministry of Water Resources. The funds are intended to support key water infrastructure and help complete ongoing projects.

The ECC also approved three separate Technical Supplementary Grants for the Defence Division. These included Rs54 billion for ongoing Defence Services projects, Rs1.094 billion for the induction of a Lineage L-1000 aircraft and Rs29.139 billion for Project Istaqlal. The combined amount approved for these defence requirements was Rs84.233 billion.

In another decision, the committee approved Rs3.71 million for helicopter maintenance requirements of Frontier Corps Balochistan (North).

The committee also approved the transfer of Rs15.625 billion saved through government austerity and fuel conservation measures to the Prime Minister’s Austerity Fund 2026. The move was described as part of the government’s effort to control spending and manage public money carefully.

The ECC approved changes to the tiers and bank rate of the Prime Minister’s Youth Business and Agriculture Loan Scheme. The revised structure aims to make affordable loans more accessible and encourage young people to start businesses, work in agriculture and create employment.

In a decision concerning personal privacy and security, the committee approved restrictions on the import of camera enabled smart glasses. It also recommended that provincial governments and the Islamabad Capital Territory introduce suitable workplace rules to control the use of these devices.

The committee approved the continuation of gas supply to FatimaFert and Agritech, the two urea manufacturing plants operating on the SNGPL network, until December 31, 2026. The approval is subject to the availability of the required energy supply.

The ECC also relaxed certain requirements under the Exploration and Production Rules to allow the extension and renewal of 89 petroleum rights. The extensions will remain subject to the fulfilment of prescribed conditions.

Another Rs1 billion was approved for gasification of villages located within five kilometres of gas production fields during the financial year 2026 to 27. The funding is intended to help develop gas infrastructure and improve access for communities living close to producing fields.

Separately, Finance Minister Senator Muhammad Aurangzeb met a delegation of the Pakistan Textile Exporters Association, led by its chairman Rehan Naseem Bharara, to discuss export performance, energy costs, access to finance and the business environment.

The minister said exports were important for sustainable economic growth and urged businesses to improve productivity, adopt modern technology, encourage innovation and produce higher value goods to compete in international markets.

He stressed the need to improve access to finance, particularly for small and medium enterprises, so that more businesses could become part of the export supply chain. The delegation also raised concerns about business conditions, financing and the need for closer coordination between the government and industry.

The delegation included the president of the Faisalabad Chamber of Commerce and Industry, former PTEA chairman and group leader Khurram Mukhtar, Arif Ihsan Malik, Pakistan Hosiery Manufacturers and Exporters Association Chairman Zia Alamdar, and Pakistan Readymade Garments Manufacturers and Exporters Association Chairman Sohail Afzal. The Federal Secretary for Commerce and senior officials also attended.

In another meeting, the finance minister held talks with a Mastercard delegation led by Mark Elliott, Division President for East Arabia, on digital payments, financial inclusion and cybersecurity.

Aurangzeb said the government was committed to expanding digital payments under the Prime Minister’s cashless economy initiative. He said digital financial services could help agriculture, small and medium businesses and people who have limited access to banking services.

The discussions also covered cross border remittances, digital payment infrastructure and protection against online fraud. The minister said cybersecurity and fraud prevention must remain central to the development of a secure digital financial system.

Mark Elliott reaffirmed Mastercard’s long term commitment to Pakistan and expressed interest in using the company’s global experience and technology to support digital payments, financial inclusion, remittances and cybersecurity.

The delegation also included Mastercard Pakistan and Afghanistan Country Manager Arslan Khan and Director Public Sector Jibran Jamshad.