The Economic Coordination Committee (ECC) of the Cabinet has approved supplementary grants worth around Rs380 billion. These include Rs275 billion for five major water projects and nearly Rs84 billion for defense-related requirements. The committee also approved continued gas supplies to two Punjab-based fertilizer plants, Fatima and Agritech, until December 31. The supply will depend on gas availability.
Finance Minister Muhammad Aurangzeb chaired the ECC meeting on Wednesday. The committee reviewed several proposals covering water infrastructure, national security, energy, and trade.
Rs275 Billion Allocated for Five Water Projects
The ECC approved Rs275 billion for five major water projects under the Ministry of Water Resources. These projects have faced financial constraints during implementation. The funding will cover the Diamer-Bhasha Dam, Mohmand Dam, Greater Karachi Water Supply (K-IV), Chashma Right Bank Canal, and Kacchi Canal.
The funds will be released gradually according to Wapda’s requirements. Payments will follow the authority’s project implementation plan. The government had allocated around Rs103 billion for these projects in the 2026-27 budget. However, Wapda raised concerns that the amount was insufficient to maintain progress.
Wapda Chairman Muhammad Saeed had informed a parliamentary panel about the funding shortage. He said the prime minister and Finance Ministry had approved his requests for additional funds. In June, the federal government secured around Rs1.035 trillion from the four provinces. The amount was obtained outside the National Finance Commission framework. It was intended to support strategic national needs, including water projects and national security.
Nearly Rs84 Billion Approved for Defense Needs
The ECC approved three supplementary grant proposals submitted by the Defense Division. These included Rs54 billion for three Defence Services project requirements. The allocation includes more than Rs31 billion for the Special Security Divisions of North and South. Another Rs11.88 billion will support Pakistan Navy projects. The remaining Rs10 billion will cover internal security duties and allowances.
The committee also approved Rs1.094 billion for the induction of a Lineage L-1000 executive aircraft into the army fleet. Additionally, it allocated Rs29.139 billion for Project Istaqlal.
According to the official statement, these approvals will meet essential operational needs. They will also support the country’s national security priorities. Separately, the ECC approved Rs3.71 billion for Frontier Corps Balochistan (North). The grant will cover helicopter maintenance requirements following a request from the Narcotics Control Division.
Smart Glasses Import Restrictions
On a proposal from the Commerce Division, the committee approved restrictions on importing camera-enabled smart glasses.
It also recommended that provincial governments and the Islamabad Capital Territory introduce workplace rules. These regulations will govern the use of such devices in professional settings.
Petroleum Rights and Gas Infrastructure Funding
The ECC approved relaxations in the applicable Exploration and Production (E&P) Rules. The decision will allow the extension and renewal of 89 petroleum rights, subject to prescribed conditions. The committee also approved Rs1 billion for village gasification during FY27. The funding will cover villages located within a five-kilometre radius of gas production fields.
The initiative aims to expand gas infrastructure and improve natural gas access. It will particularly benefit communities located near existing production fields.
The committee approved the transfer of Rs15.625 billion to the Prime Minister’s Austerity Fund 2026. The amount comes from savings generated through government austerity and fuel conservation measures. According to the official statement, the move reflects the government’s focus on fiscal discipline. The ECC also allowed continued gas supplies to Fatima and Agritech fertilizer plants until December 31. However, the arrangement remains subject to gas availability.
