ECC clears multi-billion rupee grants for navy’s Hangor project, PSO, energy sector

ISLAMABAD: The Economic Coordination Committee (ECC) on Friday approved a sweeping package of multi-billion rupee technical supplementary grants spanning defence procurement, state enterprise bailouts, energy sector settlements, and major counter-terrorism security projects.

The high-level meeting, chaired by Finance Minister Muhammad Aurangzeb, moved swiftly to clear a backlog of summary proposals submitted by various ministries.

NAVAL ACQUISITION AND ENERGY BACKSTOPS

On the defence front, the ECC approved a major allocation of Rs10.15 billion ($36.5 million) to fund the Pakistan Navy’s Hangor project — an ongoing program focused on acquiring advanced submarine capabilities to strengthen the country’s maritime defence footprint.

To protect the energy sector from circular debt bottlenecks, the ECC extended a Rs100 billion ($360 million) syndicated running finance facility for state-owned Pakistan State Oil (PSO).

Additionally, the ECC approved an amended settlement framework deed with Cnergyico under the Pakistan Oil Refining Policy. The decision resolves lingering disputes over late payment surcharges and sanitization issues, clearing a path for long-delayed refinery upgrades and foreign investment inflows.

Operations at the Engro Vopak Terminal Limited (EVTL) were also ordered to continue uninterrupted through a dedicated regulatory mechanism.

CYBER, DEFENSE AND LOCAL COUNTER-TERRORISM ALLOCATIONS

The ECC accepted seven comprehensive agendas brought forward by the Ministry of Interior, underscoring Islamabad’s tightening grip on security infrastructure:

Safe City Expansion

The ECC approved Rs1.88 billion to expand the surveillance net of the Islamabad Safe City Project.

Reqo Diq Security

The ECC approved Rs413.9 million for security management charges for Reqo Diq, a multi-billion dollar copper-gold mining project in Balochistan.

It approved Rs800 million for the Pakistan Coast Guards to purchase fast patrol boats; Rs150 million for the National Counter Terrorism Authority (NACTA); Rs528 million for border management and operational expenses of the Pakistan Land Ports Authority.

The committee also finalized a Rs241 million compensation package for the families of victims and martyrs of the last Islamabad suicide bombing.

Separately, the ECC approved Rs692.9 million to clear the balance ledger for security arrangements linked to the Islamabad Peace Dialogue.

PROVINCIAL DEVELOPMENT AND FISCAL BAILOUTS

The ECC authorized significant regional development tranches, approving Rs4.37 billion to plug urgent budgetary gaps for the Gilgit-Baltistan government, alongside an isolated Rs183.5 million to install mobile cell towers in GB’s remote Shigar district.

Under the Sustainable Development Goals Achievement Programme (SAP), the ECC approved Rs7.26 billion for federally-administered community projects, alongside a specific Rs2.84 billion infrastructure grant bound for Khyber Pakhtunkhwa.

It approved Rs 8.75 billion to finance the ongoing urban development packages in Karachi and Hyderabad.

CORPORATE REGULATION AND ADMINISTRATIVE ADJUSTMENTS

The ECC approved Rs733 million bailout package for the state-owned Pakistan Television (PTV) to guarantee employee salaries for June.

In the industrial sector, it approved Rs1.30 billion for Phase-II-A of the Pakistan mint’s modernization drive.

It approved Rs 914.7 million for the Intellectual Property Organisation (IPO-Pakistan) for the fiscal year 2025-26.

The committee signed off on Rs119.9 million grant covering salaries and allowances for parliamentary secretaries, alongside a Rs30 million project to expand and renovate the grand mosque housed within the Parliament House complex.

It approved honorariums for personnel attached to the Ministry of Commerce, the Ministry of Law, and the Accountant General Pakistan Revenues (AGPR) in recognition of extra duties during the fiscal year.