ECC Approves Major Financial Allocations
The Economic Coordination Committee (ECC), chaired by Finance Minister Muhammad Aurangzeb on Wednesday, approved significant financial measures including a Rs52 billion Technical Supplementary Grant (TSG) for release to the Central Power Purchasing Agency-Guarantee (CPPA-G) as government equity in power distribution companies (DISCOs). Additionally, the committee sanctioned the re-appropriation of Rs97.649 billion from K-Electric to the Inter-DISCO Tariff Differential Subsidy.
Funds for National Celebrations and Infrastructure
The ECC also approved a TSG of Rs1.289 billion for Independence Day and Marka-e-Haq Celebrations 2025, along with Rs2 billion for the Marka-e-Haq Monument Project in Islamabad. Furthermore, Rs4.5 billion was allocated for the completion of Phase-II of the Pakistan Asan Khidmat Centre in Islamabad, and Rs911.2 million was re-appropriated for the Smart Islamabad Initiative.
Employee Expenditure and Incentives
A TSG of Rs8.216 million was approved for employee-related expenditure by the Prime Minister's Inspection Commission. The committee also approved Rs312.3 million for an incentive package for PAS and PSP officers serving in Balochistan. In a move to streamline incentives, the ECC decided to discontinue the Telegraphic Transfer Charges Incentive Scheme from July 1, 2026.
Projects and Payments
The ECC approved Rs793.7 million for the District Shangla PSDP scheme and authorized salary payments for Pakistan Steel Mills employees. Additionally, Rs600 million was approved as the federal government's share for installing a Vessel Monitoring System in fishing boats. Other approvals included Rs250 million for Frontier Corps KP (North), extension of sovereign guarantees for SNGPL's Rs50 billion financing facility from Meezan Bank, Rs7 billion for Pakistan Railways, Rs22.4 million for the Public Private Partnership Authority, Rs193.2 million for the Federal Investigation Agency, and Rs4.2 billion for payments to families of Shuhada personnel of Civil Armed Forces.
Renegotiated EVTL Deal
In a separate decision, the ECC approved the extension of the EVTL Implementation Agreement at Port Qasim Authority (PQA). The committee noted that bureaucratic delays had left the government with no other option but to extend the agreement, which was set to expire on June 17, 2026. Prime Minister Shehbaz Sharif had directed an inquiry against the bureaucracy over delays in decision-making. Members of the ECC highlighted that the case exemplified sheer bureaucratic inertia and delays, which had become a major hurdle for business development and economic ventures.
SIFC Involvement and Pricing
Special Investment Facilitation Council (SIFC) officials informed the ECC that every possible care had been taken to finalize the case with due diligence, given the SIFC's mandate to issue directions and grant exemptions to facilitate investment and commerce. They apprised the committee that the best price for the contract had been secured after a series of negotiations, with the price rising from $28.3 million to $242 million. An independent audit of the pricing was conducted by Ernst & Young, and another evaluation will be carried out. Officials further informed the ECC that the exclusivity granted to EVTL had been removed.
Urgency and Future Steps
Given the urgency of the matter, as the last date for contract extension was June 18, 2026, an early decision was needed. Concern was raised regarding delays by the Ministry of Maritime Affairs (MoMA), emphasizing the need to investigate whether the delays were mala fide or the result of incompetence or neglect. The ECC was informed that an inquiry had already been directed by the prime minister. On a query about land availability around the facility, MoMA clarified that land was available and future cases would be decided on merit. The ECC concluded that the observations raised had been adequately addressed and directed the sponsoring agency to follow all necessary codal and regulatory requirements to finalize the case. The case will be sent for cabinet ratification.
The meeting was attended by federal ministers, special assistants, secretaries, and senior officials.
