ECC told price pressures easing as key food items stabilise after recent volatility

The Economic Coordination Committee (ECC) on Monday was informed that inflationary pressures on essential commodities had moderated following a brief period of volatility, with recent data showing gradual stabilisation in prices of key food and household items.

The assessment was shared during a meeting of the committee held at the Finance Division and chaired by Federal Minister for Finance and Revenue Muhammad Aurangzeb, according to a statement issued by the Ministry of Finance.

Officials told the committee that coordinated interventions by federal, provincial and district administrations, supported by strengthened oversight mechanisms such as the National Price Monitoring Committee, had helped contain price volatility and improve market stability.

The ECC was informed that prices of several essential commodities, including tomatoes, onions, wheat flour, garlic and liquefied petroleum gas, had declined in recent weeks, while sugar prices were also moving downward. At the same time, items such as eggs, chicken, pulses, cooking oil, bread and milk registered only marginal increases, signalling an overall easing in price pressures across the market.

Separately, the committee approved multiple Technical Supplementary Grants (TSGs) across ministries and divisions. These included Rs372 million for the National Accountability Bureau under the Ministry of Law and Justice to support digital transformation and deployment of artificial intelligence-based systems, and Rs311 million for the Government of Balochistan to finance incentive packages for Pakistan Administrative Service and Police Service of Pakistan officers serving in the province.

The committee also approved Rs100 million for the Cannabis Control and Regulatory Authority under the Cabinet Division to support renovation and operationalisation of its facilities, along with Rs30 million for the Ministry of Inter Provincial Coordination to provide financial rewards to the Pakistan national field hockey team following qualification for the FIH Hockey World Cup after an eight-year gap.

In another key decision, the ECC considered a summary submitted by the Ministry of Defence regarding allocation of Rs5.985 billion to PIA Holding Company Limited for settlement of liabilities of Pakistan International Airlines Corporation Limited. The committee approved funds for reimbursement of medical and pension payments and salary disbursements, while directing that the matter of payments to the National Insurance Company Limited be taken up with the relevant revenue authority for adjustment in line with audit recommendations.

The ECC further approved amendments to the Import Policy Order 2022 to introduce a prohibitory clause banning imports of goods produced through forced labour, in line with Pakistan’s commitments under conventions of the International Labour Organization.

In addition, the committee cleared amendments to the Import-Cum-Export Scheme of the Import Policy Order 2022 and the Export Facilitation Scheme 2021, allowing temporary import of used vehicles and auto parts for repair, refurbishment and subsequent re-export under a pilot project, with instructions for a review after one year.

The ECC also approved a proposal from the Ministry of National Food Security and Research for disposal and export of existing inventory of donkey meat and hides from the Gwadar Donkey Slaughter House in accordance with applicable export regulations and protocols.

Separately, the committee reviewed a summary from the Power Division regarding the Public Service Obligation agreement with former distribution companies of the Water and Power Development Authority and decided to refer the matter to the Cabinet Committee on State-Owned Enterprises for further consideration.