The Economic Coordination Committee (ECC) of the federal cabinet has approved supplementary grants worth Rs380 billion for various defence, water infrastructure and development projects.
The meeting, chaired by Finance Minister Muhammad Aurangzeb, also allowed the continuation of gas supplies to two fertiliser plants in Punjab, Fatima and Agritech, until December 31, subject to availability.
According to an official statement, the ECC approved three proposals submitted by the Defence Division, including supplementary grants of Rs54 billion for various defence-related expenditures.
Of this amount, more than Rs31 billion was allocated for the Special Security Divisions in North and South, Rs11.88 billion for Pakistan Navy projects and Rs10 billion for internal security duties and allowances.
The committee also approved Rs1.094 billion for the induction of a Lineage L-1000 executive aircraft into the Army fleet, along with Rs29.139 billion for Project Istaqlal. The funds are intended to meet operational requirements and support national security priorities.
In another major decision, the ECC approved supplementary grants of Rs275 billion for five key water sector projects facing financial constraints. These include the Diamer-Bhasha Dam, Mohmand Dam, Greater Karachi Water Supply Project (K-IV), Chashma Right Bank Canal and Kacchi Canal.
The funds will be released in phases according to the Water and Power Development Authority’s (WAPDA) requirements and payment schedule to ensure the timely implementation of the projects.
The government had allocated approximately Rs103 billion for these projects in the federal budget for fiscal year 2026-27. However, WAPDA had raised concerns over insufficient funding, stating that financial constraints were affecting project implementation.
The ECC also sanctioned Rs3.71 billion for the Frontier Corps Balochistan (North) to meet the maintenance expenses of its helicopters.
Furthermore, the committee approved the transfer of Rs15.625 billion in savings generated through austerity and fuel conservation measures to the Prime Minister’s Austerity Fund 2026.
On the recommendation of the Commerce Division, the ECC also approved restrictions on the import of camera-enabled smart glasses. Provincial governments and the Islamabad Capital Territory administration were advised to introduce workplace regulations governing the use of these devices.
Additionally, the committee approved relaxation of certain Exploration and Production (E&P) Rules to facilitate the extension and renewal of 89 petroleum rights, subject to prescribed conditions.
The ECC also sanctioned a grant of Rs1 billion for the gasification of villages located within a five-kilometre radius of gas production fields during FY2026-27. The initiative aims to expand gas infrastructure and improve access to natural gas in nearby communities.
