ECC approves Rs40bn-plus in supplementary grants for railways, elections and SMEs

Pakistan's Economic Coordination Committee (ECC) approved more than Rs40 billion in technical supplementary grants on Thursday for elections, railways, small businesses, tax administration and other needs, according to a Finance Division statement. Finance Minister Muhammad Aurangzeb chaired the meeting, which considered 17 agenda items.

What did the ECC approve in supplementary grants?

The largest allocation was Rs11.329 billion for the Utility Stores Corporation. Rs10 billion went to the Thar Coal Rail Connectivity Project, Rs8 billion to the Public Private Partnership Authority, Rs4 billion to Pakistan Revenue Automation and Rs2 billion to the Small and Medium Enterprises Development Authority.

The Utility Stores Corporation funds will meet immediate needs and help complete its closure process. The Railways Ministry grant provides budgetary cover for the Thar project, which aims to use indigenous Thar coal for power generation and other industrial sectors.

The Public Private Partnership Authority will use its funds to support infrastructure projects through public-private partnerships. Pakistan Revenue Automation (Pvt.) Ltd. will use its grant for the ongoing restructuring and implementation of the Federal Board of Revenue's Transformation Plan. The small business grant will implement the authority's approved business plan in line with the prime minister's vision.

How much did the ECC approve for elections?

The ECC approved Rs596.18 million for the Election Commission of Pakistan to reallocate and revalidate surrendered funds. The money covers local government elections in Islamabad Capital Territory, local government by-elections in Sindh and Balochistan, and delimitation activities in Punjab.

The committee separately considered a commission request for Rs17.873 billion to procure non-sensitive materials for local government elections in Punjab, Khyber Pakhtunkhwa, ICT and cantonment boards across Pakistan. It approved the immediate release of Rs2 billion through a technical supplementary grant.

What financing and development measures did the ECC approve?

The ECC approved a State Bank of Pakistan framework to include Agency Financial Institutions under the government's existing risk coverage schemes for small enterprises and small farmers through wholesale and agency arrangements. The framework aims to expand access to financing using the reach of eligible microfinance and nonbanking financial institutions.

It also approved an addendum to the Second Supplemental Trust Deed of the Credit Guarantee Trust Fund. The change expands the use of its existing credit guarantee facility for affordable housing finance.

A Rs1.666 billion grant will fund the prime minister's initiative to provide short-term training in China to 1,000 agricultural professionals. The program aims to strengthen expertise in agricultural technology, innovation and research.

The committee approved Rs934.481 million for the Pakistan Sports Endowment Fund Scheme, 2025, in favor of the Ministry of Inter-Provincial Coordination. The funds will support the fund's operations under its approved framework and contribute to development of the national sports ecosystem.

It approved Rs150 million for the Ministry of Climate Change and Environmental Coordination for Pakistan's participation in the 31st Conference of the Parties, or COP31, scheduled to be held in Antalya, Türkiye. The Capital Development Authority also received Rs300 million for essential repair and maintenance costs at the Prime Minister's Office and Prime Minister's Staff Colony during the 2026-27 fiscal year.

Which trade and agriculture decisions did the ECC take?

The ECC approved an amendment to SRO 693(I)/2006 on the levy of additional customs duty on imported tires that are manufactured locally. The measure aims to promote domestic manufacturing.

It also approved a Commerce Ministry proposal to invest Export Development Fund resources in government securities under the approved framework. The proposal aims to ensure productive use of the fund and sustainable financial management.

The committee approved minimum indicative prices for the 2026 tobacco crop and revisions to cess rates for 2026-27. It deferred a proposal to adjust the outstanding receivables of the Pakistan Agricultural Storage and Services Corporation from provincial governments through deductions at source, and directed that it be resubmitted after further consultation with relevant stakeholders.

Federal Minister for Investment Qaiser Ahmed Sheikh, Federal Minister for Commerce Jam Kamal Khan, Federal Minister for Power Sardar Awais Ahmad Khan Leghari and Federal Minister for Education and Professional Training Khalid Maqbool Siddiqui attended the meeting. Federal secretaries and senior officials from relevant ministries, divisions and regulatory authorities also took part.