ECC approves Rs11.3bn to ‘complete’ Utility Stores closure, Rs10bn for Thar coal rail project

ISLAMABAD: The Economic Coordination Committee (ECC) on Thursday approved Rs11.329 billion to meet the immediate financial requirements and complete the closure process of the Utility Stores Corporation (USC), while allocating Rs10 billion for the Thar coal rail connectivity project.

The ECC also approved Rs8 billion for the Public-Private Partnership Authority, Rs4 billion for Pakistan Revenue Automation Limited (PRAL) to implement the Federal Board of Revenue’s (FBR) reform plan and Rs2 billion for the Small and Medium Enterprises Development Authority (SMEDA) to implement its approved business plan.

The decisions were taken at a meeting of the ECC chaired by Finance Minister Senator Muhammad Aurangzeb, which considered a 17-point agenda submitted by various ministries and divisions, according to the Finance Ministry.

Under the Thar coal rail connectivity project, the approved Rs10 billion will be used to facilitate transportation of locally produced coal for power generation and other industrial sectors. The project is aimed at improving connectivity between the Thar coal fields and users of the fuel.

The ECC approved Rs8 billion in technical supplementary grant for the Public-Private Partnership Authority to support the preparation and implementation of infrastructure projects through public-private partnerships.

It also approved Rs4 billion for PRAL for implementation of the FBR reform plan, as part of the government’s efforts to modernise tax administration and strengthen revenue systems.

Measures for small businesses and farmers

The committee approved a new financing mechanism prepared by the State Bank of Pakistan to expand access to credit for small businesses and farmers.

Under the mechanism, microfinance institutions and other non-bank financial institutions will be eligible for inclusion in the government’s existing credit guarantee schemes.

The Finance Ministry said the measure was aimed at broadening access to financing for small businesses and farmers, particularly through institutions that serve borrowers outside the conventional banking system.

The ECC also approved an expansion of the existing credit guarantee fund to facilitate financing for low-income households seeking affordable housing.

The move is intended to make the existing loan guarantee facility for low-cost housing more effective and improve access to housing finance.

Local government elections

The ECC approved Rs596.18 million for local government elections in Islamabad, by-elections in Sindh and Balochistan, and delimitation in Punjab.

It separately approved the immediate release of Rs2 billion for the procurement of equipment required for local government elections in Punjab, Khyber Pakhtunkhwa, Islamabad and cantonment boards across the country.

Agricultural training in China

The committee approved around Rs1.666 billion for a short-term training programme in China for 1,000 Pakistani agriculture experts.

According to the Finance Ministry, the programme aims to enhance the experts’ capabilities in modern agricultural technologies, research and innovation.

Sports and climate commitments

The ECC approved around Rs934.5 million to activate the Pakistan Sports Endowment Fund, which is intended to support the development of the country’s sports sector.

It also approved Rs150 million to meet expenses related to Pakistan’s participation in the COP31 climate conference in Türkiye.

Prime Minister’s Office, tobacco and tyre industry

The committee approved Rs300 million for essential repairs and maintenance at the Prime Minister’s Office and the Prime Minister’s Staff Colony through the Capital Development Authority.

It also approved a proposal to revise the minimum indicative prices for the 2026 tobacco crop and the cess rates for fiscal year 2026-27.

The ECC deferred a proposal concerning the direct deduction of Pakistan Agricultural Storage and Services Corporation’s (PASSCO) outstanding dues from provincial governments. The matter will be brought back before the committee after further consultation with the relevant stakeholders.

In another decision aimed at supporting local manufacturing, the ECC approved an amendment to the SRO concerning additional customs duty on imports of tyres manufactured in Pakistan. The Finance Ministry said the move was intended to promote the domestic tyre industry and local production.

Export Development Fund

The ECC also approved the use of Export Development Fund resources for investment in government securities under the approved mechanism.

The Finance Ministry said the measure was aimed at ensuring better utilisation of the fund’s resources and strengthening its financial stability.

The decisions were taken as the government continues to use the ECC as its main forum for approving supplementary financing, economic policy measures and funding requirements of ministries and public-sector entities.