ECC Approves Financing, Development Measures And Rs40bn-Plus In Supplementary Grants
Listen5 min
Read aloud by your device’s built-in synthetic voice, not a recording. Needs a browser that can read aloud.
✧ GENERATE BRIEFING
The Economic Coordination Committee (ECC) of the Cabinet, chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, convened a high-level session on Thursday, approving a comprehensive package of financing frameworks, development measures, and over Rs40 billion in Technical Supplementary Grants (TSGs). Reviewing 17 distinct agenda items across multiple ministries, the committee acted to bolster small businesses, advance critical infrastructure, expand agricultural capacity, and fund administrative and electoral mandates.Key financial allocations and policy approvals cleared during the meeting include:SME & Agriculture Credit Frameworks: Cleared an SBP framework to bring eligible microfinance and non-financial institutions into risk-coverage schemes for small enterprises and farmers, alongside trust deed amendments for affordable housing credit guarantees.Institutional & Corporate Support: Approved Rs2 billion for SMEDA’s business plan, Rs11.329 billion for the Utility Stores Corporation (USC) to manage operations and closure processes, and Rs4 billion for Pakistan Revenue Automation (Pvt.) Limited (PRAL) to advance FBR transformation.
The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved a series of financing, development and institutional measures, along with multiple Technical Supplementary Grants (TSGs), as the government moved to support small businesses, infrastructure, agriculture, taxation and other sectors.
The meeting, chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb at the Finance Division, reviewed 17 agenda items submitted by various ministries and divisions.
Among the key decisions, the ECC approved a financing framework prepared by the State Bank of Pakistan (SBP) to bring eligible Agency Financial Institutions (AFIs) into the government’s existing risk coverage schemes for small enterprises and small farmers. The arrangement will allow eligible microfinance institutions and non-bank financial institutions to extend financing through wholesale and agency models, potentially widening access to formal credit.
The committee also approved an addendum to the Second Supplemental Trust Deed of the Credit Guarantee Trust Fund (CGTF). The amendment will expand the facility’s scope and facilitate greater use of credit guarantees for affordable housing finance.
Funding for SMEDA, USC and Infrastructure
The ECC sanctioned a Rs2 billion TSG for the Small and Medium Enterprises Development Authority (SMEDA) to implement its approved business plan in line with the government’s policy direction.
Another Rs11.329 billion TSG was approved for the Utility Stores Corporation (USC) to meet its immediate financial requirements and support completion of the corporation’s closure process.
The committee also allocated Rs8 billion to the Public Private Partnership Authority (P3A) through a TSG. The funds will support the preparation and implementation of infrastructure projects under public-private partnership arrangements.
For the railway sector, the ECC approved Rs10 billion for the Ministry of Railways to provide budgetary support for the Thar Coal Rail Connectivity Project. The project is intended to facilitate transportation and utilisation of locally produced Thar coal for power generation and other industrial uses.
Election-Related Funding and Administrative Allocations
The ECC approved Rs596.18 million through a TSG for the Election Commission of Pakistan (ECP) to reallocate and revalidate surrendered funds for local government elections in Islamabad Capital Territory, local government by-elections in Sindh and Balochistan, and delimitation activities in Punjab.
The committee also reviewed the ECP’s request for Rs17.873 billion for non-sensitive election materials for local government elections in Punjab, Khyber Pakhtunkhwa, Islamabad and cantonment boards. For now, the ECC approved the immediate release of Rs2 billion through a TSG.
A further Rs300 million was approved for the Capital Development Authority (CDA) to cover essential repair and maintenance expenses related to the Prime Minister’s Office and Prime Minister’s Staff Colony during FY2026-27.
Climate, Sports and Agricultural Capacity Building
The ECC sanctioned Rs150 million for the Ministry of Climate Change and Environmental Coordination to meet expenses linked to Pakistan’s participation in the 31st Conference of the Parties (COP31) in Antalya, Türkiye.
The committee also approved Rs934.481 million for the Pakistan Sports Endowment Fund Scheme 2025 under the Ministry of Inter-Provincial Coordination. The funding will help operationalise the fund under its approved framework and support development of the country’s sports ecosystem.
A significant allocation was approved for agricultural capacity building. The ECC sanctioned Rs1.666 billion for the Prime Minister’s initiative to provide short-term training in China to 1,000 agricultural professionals. The programme aims to strengthen expertise in agricultural technology, innovation and research.
The committee also approved Minimum Indicative Prices for the 2026 tobacco crop, along with revised cess rates for 2026-27.
However, a proposal concerning the adjustment of PASSCO’s outstanding receivables from provincial governments through at-source deductions was deferred. The ECC directed the concerned authorities to consult relevant stakeholders and resubmit the proposal.
Customs, FBR and Export Funds Measures
The ECC approved an amendment to SRO 693(I)/2006 concerning Additional Customs Duty on the import of tyres that are manufactured locally. The government said the measure is intended to encourage domestic tyre manufacturing.
The committee also approved a Rs4 billion TSG for Pakistan Revenue Automation (Pvt.) Limited (PRAL) to support ongoing restructuring and implementation of the Federal Board of Revenue’s Transformation Plan.
In another financial measure, the ECC approved a proposal from the Ministry of Commerce allowing Export Development Fund (EDF) resources to be invested in government securities under the approved framework. The move is intended to ensure productive utilisation of EDF funds and strengthen their financial management.
