The Economic Coordination Committee (ECC) of the Cabinet on Friday approved multiple technical supplementary grants (TSGs), funding for disaster response and education payments, and a reform package aimed at reducing electricity generation costs and easing circular debt pressures in the power sector.
The ECC meeting, chaired by Finance Minister Senator Muhammad Aurangzeb at the Finance Division, cleared a series of summaries submitted by various ministries and divisions.
The committee approved a summary of the Petroleum Division seeking a TSG of Rs13.1 million to meet Pakistan’s annual contribution to the International Energy Forum (IEF), noting that continued membership was important for the country’s participation in global energy dialogue and cooperation.
It also approved another Petroleum Division proposal seeking a TSG of Rs3 billion for gas supply schemes in villages located within a five-kilometre radius of gas production fields.
The schemes will be implemented through Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines Limited (SNGPL).
The ECC further approved a summary of the Ministry of Federal Education and Professional Training seeking a TSG of Rs200 million in FY2025-26 to pay outstanding dues to teachers of Basic Education Community Schools (BECS).
The payments arise from court directives regarding salary differentials in line with notified minimum wages for the period from August 2017 to June 2021.
The committee also considered a proposal from the same ministry seeking exemption from relending terms for an additional $4 million allocated to the Higher Education Commission (HEC) under the restructured Higher Education Development in Pakistan (HEDP) Project.
The ECC was informed that the World Bank had reallocated the funds to the Investment Project Financing/Technical Assistance component, increasing HEC’s share beyond the previously exempted $77 million.
In another decision, the ECC approved a summary of the National Disaster Management Authority (NDMA) seeking a TSG of Rs3.63 billion to reimburse expenditures incurred during Monsoon Response 2025 operations and overseas humanitarian assistance.
The committee also approved a TSG of Rs1.3 billion for the implementation of Sustainable Development Goals Achievement Programme (SAP) schemes during FY2025-26, as proposed by the Power Division.
Meanwhile, the ECC approved a comprehensive reform package proposed by the Ministry of Energy (Power Division) aimed at reducing electricity generation costs, addressing legacy payment obligations and easing circular debt pressures.
Officials informed the committee that the proposed measures stem from negotiations with several power producers and are intended to rationalise tariff structures, streamline payment arrangements and settle outstanding financial liabilities through mutually agreed mechanisms.
The ECC noted that the initiative is expected to improve the sustainability of the power sector, reduce tariff pressures on consumers and support broader structural reforms.
Additionally, the committee considered a proposal from the Ministry of Information and Broadcasting seeking a TSG of Rs2.231 billion to clear outstanding liabilities related to federal public information and awareness campaigns. The ECC approved Rs1.47 billion and directed the ministry to present the remaining requirement in the next quarter.
The meeting was attended by Petroleum Minister Ali Pervaiz Malik, Commerce Minister Jam Kamal Khan, Planning Minister Ahsan Iqbal Chaudhry, Investment Minister Qaiser Ahmed Sheikh (virtually), Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan, and senior officials from relevant ministries and divisions.