ECC Approves Multiple Supplementary Grants Across Key Sectors

The Economic Coordination Committee of the Cabinet (ECC) has approved multiple Technical Supplementary Grants (TSGs) across several sectors, including energy, education, disaster management and public sector initiatives. The approvals were granted during a meeting held at the Finance Division and chaired by Federal Minister for Finance and Revenue Muhammad Aurangzeb.

Among the decisions taken, the committee approved a summary submitted by the Petroleum Division requesting a TSG amounting to Rs13.1 million to cover Pakistan’s annual membership contribution to the International Energy Forum (IEF). Officials informed the committee that maintaining membership in the forum is strategically important for Pakistan’s continued participation in global discussions on energy policy and cooperation.

The ECC also approved a separate proposal from the Petroleum Division seeking an allocation of Rs3 billion to finance gas supply schemes in villages situated within a five-kilometre radius of natural gas production fields. These development projects are to be executed through Sui Southern Gas Company Limited and Sui Northern Gas Pipelines Limited, with the objective of extending gas connectivity to nearby communities.

In the education sector, the committee sanctioned a TSG of Rs200 million in favour of the Ministry of Federal Education and Professional Training. The funds are intended to clear outstanding financial liabilities relating to teachers serving in the Basic Education Community Schools (BECS). These payments represent salary adjustments arising from judicial directives requiring alignment of teachers’ wages with the officially notified minimum wage for the period spanning August 2017 to June 2021.

The ECC also reviewed an additional proposal submitted by the same ministry seeking exemption from relending conditions applicable to an additional allocation of $4 million provided to the Higher Education Commission under the restructured Higher Education Development in Pakistan Project. The funding had been reallocated by the World Bank to support the project’s technical assistance component.

Furthermore, the committee approved a grant amounting to Rs3.63 billion in favour of the National Disaster Management Authority (NDMA). The allocation is intended to reimburse expenditures incurred during the authority’s operational response to Monsoon Response 2025 activities as well as overseas humanitarian assistance initiatives.

A separate summary submitted by the Power Division was also approved, authorising a TSG of Rs1.3 billion for the implementation of development schemes under the Sustainable Development Goals Achievement Programme during the fiscal year 2025–26.

In addition to the grant approvals, the committee examined and subsequently endorsed a reform package proposed by the Ministry of Energy (Power Division) aimed at improving financial sustainability within the power sector. The reform framework is designed to reduce electricity generation costs, address legacy payment obligations and mitigate pressures arising from the sector’s persistent circular debt.

Officials briefed the committee that the proposed measures were developed following negotiations with several power producers. The reforms focus on tariff rationalisation, restructuring of payment arrangements and settlement of outstanding financial liabilities. The ECC approved the reform package along with the associated financial mechanisms required for its implementation.

Additionally, the committee considered a proposal submitted by the Ministry of Information and Broadcasting seeking Rs2.231 billion to settle pending liabilities relating to federal public information campaigns. While reviewing the request, the ECC approved an immediate allocation of Rs1.47 billion and directed the ministry to present the remaining funding requirement for consideration during the next quarter.