The Economic Coordination Committee (ECC) of the Cabinet on Friday approved a range of technical supplementary grants (TSGs), funding for disaster relief and education, as well as a reform package aimed at reducing electricity generation costs and easing circular debt in the power sector. The meeting was chaired by Finance Minister Senator Muhammad Aurangzeb at the Finance Division.
Among the key decisions, the ECC approved a TSG of Rs3 billion for gas supply schemes to villages situated within five kilometres of gas production fields. The project will be implemented through Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines Limited (SNGPL).
In the education sector, the committee cleared a TSG of Rs200 million for the Ministry of Federal Education and Professional Training to settle outstanding dues for teachers of Basic Education Community Schools (BECS). These payments arise from court-mandated adjustments to salary differentials in line with minimum wages for the period from August 2017 to June 2021.
The ECC also approved an exemption from relending terms for an additional $4 million allocated to the Higher Education Commission (HEC) under the restructured Higher Education Development in Pakistan (HEDP) Project. Officials noted that the World Bank had reallocated these funds to the Investment Project Financing/Technical Assistance component, increasing HEC’s share beyond the previously exempted $77 million.
On the disaster management front, a TSG of Rs3.63 billion was approved for the National Disaster Management Authority (NDMA) to reimburse expenses incurred during Monsoon Response 2025 operations and overseas humanitarian assistance.
For the Sustainable Development Goals Achievement Programme (SAP), the ECC approved Rs1.3 billion for FY2025-26 schemes proposed by the Power Division.
A major highlight of the meeting was the approval of a comprehensive reform package by the Ministry of Energy (Power Division). The initiative targets lower electricity generation costs, addresses legacy payment obligations, and eases circular debt pressures. Officials said the measures are based on negotiations with power producers and include rationalisation of tariffs, streamlined payment mechanisms, and settlement of outstanding liabilities. The reforms are expected to enhance sector sustainability, reduce consumer tariff pressures, and support structural reforms in the power sector.
In addition, the ECC approved Rs1.47 billion of a proposed Rs2.231 billion TSG for the Ministry of Information and Broadcasting to clear liabilities related to federal public information campaigns, while the remaining funds are to be presented next quarter.
The meeting was attended by Petroleum Minister Ali Pervaiz Malik, Commerce Minister Jam Kamal Khan, Planning Minister Ahsan Iqbal Chaudhry, Investment Minister Qaiser Ahmed Sheikh (virtually), Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan, and senior officials from relevant ministries and divisions.
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