ECC approves grants for energy, education, disaster relief, power sector reforms

The Economic Coordination Committee (ECC) of the Cabinet on Friday approved several technical supplementary grants (TSGs) for energy, education, disaster management and public sector programmes during a meeting held at the Finance Division.

The meeting was chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb.

The ECC approved a summary from the Petroleum Division seeking a TSG of Rs13.1 million to meet Pakistan’s annual contribution to the International Energy Forum (IEF). Officials informed the committee that continued membership in the forum is important for Pakistan’s participation in international energy dialogue.

The committee also approved another Petroleum Division proposal seeking 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 and Sui Northern Gas Pipelines Limited.

In the education sector, the ECC approved a TSG of Rs200 million for the Ministry of Federal Education and Professional Training to clear outstanding payments to teachers of Basic Education Community Schools (BECS). The payments relate to salary differentials arising from court directives to align wages with notified minimum wage levels for the period from August 2017 to June 2021.

The committee also considered another proposal from the same ministry seeking exemption from relending terms for an additional $4 million allocated to the Higher Education Commission under the restructured Higher Education Development in Pakistan project. The funds were reallocated by the World Bank to the technical assistance component of the project.

The ECC further approved a grant of Rs3.63 billion requested by the National Disaster Management Authority for reimbursement of expenditures incurred during Monsoon Response 2025 operations and overseas humanitarian assistance.

A summary submitted by the Power Division seeking Rs1.3 billion for implementation of Sustainable Development Goals Achievement Programme schemes during fiscal year 2025-26 was also approved.

The committee also reviewed a reform package proposed by the Ministry of Energy (Power Division) aimed at reducing electricity generation costs, addressing legacy payment obligations and easing pressures linked to circular debt in the power sector.

Officials informed the ECC that the measures were developed through negotiations with several power producers and focus on rationalising tariffs, restructuring payment arrangements and settling outstanding liabilities. The committee approved the reform package and related financial measures.

In addition, the ECC considered a proposal from the Ministry of Information and Broadcasting seeking Rs2.231 billion to clear pending liabilities related to federal public information campaigns. The committee approved Rs1.47 billion and directed the ministry to present the remaining requirement in the next quarter.