BeNewz
Related Articles
ECC approved key grants and power sector reforms. The moves aim to support energy, education, and disaster response programs
BeNewz Report
ISLAMABAD: The Economic Coordination Committee (ECC) approved multiple Technical Supplementary Grants (TSGs) and a power sector reform package during a meeting chaired by Finance Minister Senator Muhammad Aurangzeb. The decisions target energy cooperation, rural gas supply, education payments, disaster relief, and public awareness initiatives.
The ECC cleared Rs. 13.1 million for Pakistan’s annual contribution to the International Energy Forum. Officials noted that IEF membership is critical for the country’s participation in global energy policy discussions. The Committee also approved Rs. 3 billion for gas supply schemes in villages within five kilometers of gas production fields. These projects will be implemented through Sui Southern Gas Company Limited and Sui Northern Gas Pipelines Limited.
Education sector support included a Rs. 200 million TSG to settle outstanding salary dues for teachers of Basic Education Community Schools. These payments stem from court directives covering minimum wage differentials from August 2017 to June 2021. Additionally, the ECC approved an exemption from relending terms for USD 4 million allocated to the Higher Education Commission under the restructured Higher Education Development Project. This followed a World Bank reallocation that increased HEC’s share beyond the previously exempted USD 77 million.
Disaster management funding was approved at Rs. 3.63 billion for reimbursement of expenditures during the Monsoon Response 2025 and overseas humanitarian aid. In the power sector, Rs. 1.3 billion was allocated for Sustainable Development Goals Achievement Programme schemes for FY 2025–26.
The ECC also approved a comprehensive reform package for the power sector. The initiative aims to reduce electricity generation costs, settle legacy payments, and ease circular debt pressures. Officials said the reforms result from negotiations with power producers and are expected to rationalize tariffs, streamline payments, and resolve outstanding financial liabilities. Analysts suggest the measures could improve sector sustainability and moderate electricity price pressures for consumers.
Federal public awareness campaigns will receive partial funding, with Rs. 1.47 billion approved out of a requested Rs. 2.231 billion. The Ministry of Information and Broadcasting was directed to submit the remaining request in the next quarter.
Sector observers said these measures align with Pakistan’s ongoing efforts to stabilize energy and education funding while improving disaster resilience and public communication efficiency. The power sector reforms, in particular, are viewed as part of broader structural adjustments encouraged by the World Bank and the Asian Development Bank to ensure fiscal and operational sustainability.
