ECC approves key reforms; Rs 50b for defense services projects

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet, chaired by Federal Finance Minister Muhammad Aurangzeb, on Tuesday approved a series of crucial financial and administrative measures spanning defense, energy, and economic restructuring.

According to official details, the ECC approved Rs 103 million for the repair and maintenance of defense equipment used by the Federal Civil Armed Forces, aimed at strengthening operational readiness.

In addition, the committee sanctioned an additional grant of Rs 841.56 million to support border management, internal security operations, and law and order initiatives.

A major approval came in the form of a technical supplementary grant of Rs 50 billion for various ongoing defense services projects. The allocation is intended to support critical defense-related programs that were previously approved but required enhanced financial backing.

In another major structural decision, the ECC approved the dissolution of the Pakistan Agricultural Storage and Services Corporation (PASSCO) and the establishment of a new special purpose vehicle (SPV). The SPV will initially operate with a paid-up capital of Rs 1 million, and is expected to streamline grain procurement and storage operations through a more efficient corporate structure.

The committee also cleared several petroleum-sector proposals, including the extension of license periods for offshore oil and gas exploration blocks and the transfer of working interest among stakeholders. These steps are designed to encourage continuity in exploration activities and promote investment stability.

In line with broader energy-sector reforms, the ECC approved measures to boost foreign companies’ participation in Pakistan’s petroleum sector, aiming to attract international investment and modernize exploration and production practices.

The meeting was attended by Petroleum Minister Ali Pervaiz Malik, Planning Minister Ahsan Iqbal, and other senior officials from key ministries and divisions. The decisions are expected to support national security, enhance energy sector performance, and improve administrative efficiency across major government operations.