ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Friday approved over Rs2.6 trillion in Technical Supplementary Grants (TSGs), including Rs829.67 billion for domestic debt repayments and Rs1.774 trillion for settling foreign loan obligations. The approvals come at the tail end of the fiscal year 2024–25 and represent one of the largest single-day allocations in recent years.
Chaired by Finance Minister Muhammad Aurangzeb, the ECC also granted in-principle approval for a new government-backed agricultural risk coverage scheme aimed at bringing an estimated 750,000 previously unbanked small farmers into the formal financial system. The initiative, scheduled for launch on August 14, 2025, is expected to unlock an additional Rs300 billion in agricultural credit from FY26 to FY28.
The budgetary outlay for this scheme is projected at Rs37.5 billion, to be disbursed over five years from FY27 to FY31, covering risk and operational costs for participating banks. The ECC directed further refinement of the scheme, including enhanced safeguards, before its formal rollout.
Beyond debt servicing, a number of other significant allocations were approved. These included an Rs15.839 billion TSG for the Ministry of Defence to cover shortfalls in pay and allowances, and to settle dues under the Prime Minister’s Package for families of martyrs from the recent conflict with India.
SUPARCO, Pakistan’s national space agency, will receive Rs5.5 billion in rupee cover via the Strategic Plans Division, ensuring continuity of its research and operations during the current fiscal year.
Several allocations were directed toward internal security. The Ministry of Interior and Narcotics Control was granted Rs1.765 billion to settle liabilities and operational costs of the Frontier Corps in Khyber Pakhtunkhwa and Balochistan. An additional Rs300 million was approved to cover outstanding expenses of the Islamabad Capital Territory (ICT) Police.
In terms of infrastructure and operational support, Rs198 million was sanctioned for repair and maintenance of the Executive Building in Islamabad. Smaller allocations included Rs100 million each for vendor payments related to law and order in the capital and operations of the Frontier Corps KP (North), and Rs52.24 million for upgrading police investigation equipment in ICT.
The Finance Division also received Rs254.57 million to support an incentive scheme for federal service officers posted in Balochistan, and another Rs63 million to cover rent shortfalls for the Auditor General’s Department.
Among other approvals, the ECC sanctioned Rs117.97 million for the Petroleum Division’s ongoing PSDP project to upgrade the Pakistan Petroleum Corehouse, and Rs100 million to the Ministry of Foreign Affairs to meet expenses related to delegations abroad.
The wide-ranging approvals reflect the government’s push to close out the fiscal year with clear financial commitments to both strategic priorities and operational obligations, even as it prepares to enter FY2025–26 with a record Rs17.57 trillion federal budget.
