Technical Supplementary Grant Sanctioned
The Economic Coordination Committee (ECC) of the Cabinet approved a Rs100 billion Technical Supplementary Grant (TSG) on Thursday. The funds are set to be transferred to the Prime Minister’s Austerity Fund 2026.
The approval came during a meeting chaired by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb. The Finance Division had submitted the summary requesting the grant. According to the division, the allocation is aimed at cushioning consumers from petroleum price fluctuations.
The ECC noted that the reallocation of funds would be managed through rationalisation and surrender of Public Sector Development Programme (PSDP) resources. Ministries and divisions coordinated with the Planning, Development, and Special Initiatives Division to ensure minimal disruption to priority projects.
Stabilizing Petroleum Prices Amid Gulf Developments
The meeting highlighted the impact of evolving developments in the Gulf region on international oil prices. The Prime Minister directed the mobilization of PSDP resources to cover price differentials in petroleum products. This move is intended to shield consumers from sudden price shocks and market volatility.
Officials informed the committee that initial fund surrenders have already been received. The remaining adjustments are being finalized to meet the total requirement. ECC members emphasized that the reallocation ensures fiscal space while protecting essential projects.
Wheat Procurement for Strategic Reserves
In addition to the austerity fund, the ECC considered a summary from the Ministry of National Food Security and Research. It proposed procuring up to 1.0 million metric tons of wheat for federal strategic reserves under the Interim National Wheat Policy (INWP) 2025-26. Procurement will involve the private sector through a transparent and competitive process.
Officials shared updated supply and demand forecasts, production estimates, and stock positions. While crop conditions are expected to improve, uncertainties due to weather and market fluctuations remain. The committee stressed balancing farmer support, market stability, and fiscal responsibility.
The ECC also emphasized distinguishing between strategic and commercial reserves to prevent unnecessary fiscal or storage burdens. Financial implications, pricing benchmarks, and operational modalities will be further refined in consultation with the Finance Division before finalization.
Committee Participation and Key Decisions
The meeting was attended virtually by Federal Ministers Jam Kamal Khan (Commerce), Qaiser Ahmed Sheikh (Investment), and Rana Tanveer Hussain (National Food Security and Research). Federal secretaries and senior officials from relevant ministries and regulatory authorities also participated.
The ECC approved flexible procurement and financial commitments for wheat, allowing adjustments based on crop assessments and market conditions. The committee reiterated the importance of a cautious, measured approach to fiscal management while safeguarding consumer interests.
