The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved a Rs200 billion government equity injection into power distribution companies (DISCOs) to address cash flow constraints, while also reviewing inflation trends and clearing multiple financial, development and social sector proposals for FY2025-26.
According to an official statement, the committee was briefed on inflation trends, noting that headline inflation stood at 4.1% in July and 3.0% in August. Temporary pressures emerged in September and October due to flood-related supply disruptions, before easing to 6.1% in November.
The committee was told that cumulative inflation during July–November averaged 5.0%, compared with 7.9% in the same period last year. Weekly monitoring through the Sensitive Price Indicator showed stabilisation, with prices of 10 out of 51 essential commodities declining on a week-on-week basis.
Following the economic review, the ECC approved several Technical Supplementary Grants (TSGs). It sanctioned Rs5.76 billion for the establishment of Danish Schools in Azad Jammu and Kashmir, Gilgit-Baltistan and Balochistan, and for implementation of the Prime Minister’s Youth Skill Development Programme through NAVTTC, while advising exploration of public-private partnership models.
The committee approved a TSG of Rs5.19 billion for execution of development schemes under the Sustainable Development Goals Achievement Programme in Sindh and Khyber Pakhtunkhwa, and Rs170.4 million for the Pakistan Tourism Development Corporation’s FY2025-26 budget, directing the preparation of a comprehensive business plan aligned with the national tourism strategy.
On the power sector, the ECC approved revisions to eligibility criteria under the Prime Minister’s Fan Replacement Programme. It also sanctioned Rs6.36 billion for SDGs-related power schemes across Punjab, Islamabad Capital Territory, Sindh and Khyber Pakhtunkhwa, in addition to the Rs200 billion equity investment in DISCOs.
Addressing humanitarian matters, the ECC approved Rs4.775 billion for payments to 945 families of missing persons, to be disbursed under the supervision of the Commission of Inquiry on Enforced Disappearances.
The committee also approved Rs79 million for the annual maintenance of helicopters of Frontier Corps Balochistan (North) and Rs10.821 million for the repair and maintenance of helicopters of Pakistan Rangers (Sindh) during FY2025-26.
In addition, the ECC cleared the revised PC-I for construction of 104 additional family suites for Members of Parliament, including servant quarters, and directed submission of a comprehensive maintenance plan for related infrastructure.
In the defence sector, the committee approved Rs40 million for development schemes under the SDGs Achievement Programme and Rs250 million for operationalisation of King Hamad University of Nursing and Allied Medical Sciences during the current financial year.
The meeting was attended by federal ministers and senior officials from relevant ministries, divisions and regulatory bodies.
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