ECC approves Rs275bn water grant as accounts differ on total grants

The Economic Coordination Committee of the Cabinet approved technical supplementary grants for water infrastructure, defence and other requirements at a meeting on Wednesday, November 4. Published accounts differed on the aggregate: one put the grants at Rs358 billion, while another gave a total of Rs360.24 billion.

The largest allocation was Rs275 billion for ongoing water sector projects under the Ministry of Water Resources. Three grants for the Defence Division were approved: Rs54 billion for ongoing Defence Services projects, Rs29.139 billion for Project Istaqlal and Rs1.094 billion for the induction of a Lineage L-1000 aircraft.

The ECC also approved Rs3.71 million for helicopter maintenance for Frontier Corps Balochistan (North), and Rs1 billion for gasification of villages within five kilometres of gas production fields during FY2026-27. The committee, chaired by Finance Minister Muhammad Aurangzeb, considered 11 agenda items submitted by ministries and divisions.

The committee approved changes to the financing tiers and bank rate under the Prime Minister's Youth Business and Agriculture Loan Scheme. The changes were described as intended to widen access to affordable financing and encourage youth entrepreneurship and employment. It also approved transferring Rs15.625 billion in savings from austerity and fuel conservation measures to the Prime Minister's Austerity Fund 2026, separate from the supplementary grants.

Other decisions included restrictions on imports of camera-enabled smart glasses, with provincial governments and the Islamabad Capital Territory administration asked to develop workplace rules for their use. The ECC also approved relaxations in Exploration and Production Rules for the extension and renewal of 89 petroleum rights, subject to prescribed conditions.