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ECC approves Rs380bn grants, Rs275bn for five water projects

Finance Minister Muhammad Aurangzeb chaired the meeting, which also cleared around Rs84bn for the armed forces and extended gas supply to two Punjab fertiliser plants until Dec 31.

Skardu Times desk
ECC approves Rs380bn grants, Rs275bn for five water projects
Photo: TechJuice

ISLAMABAD: The Economic Coordination Committee of the cabinet approved supplementary grants of about Rs380 billion on Wednesday, including Rs275bn for five major water projects facing funding shortfalls and around Rs84bn for the armed forces.

Finance Minister Muhammad Aurangzeb chaired the meeting. According to TechJuice, the Rs275bn is meant for the Diamer-Bhasha dam, the Mohmand dam, the Greater Karachi Water Supply scheme known as K-IV, the Chashma Right Bank Canal and the Kacchi Canal, all under the Ministry of Water Resources. The money will be released in stages to match Wapda's requirements rather than in one instalment.

The 2026-27 budget had set aside about Rs103bn for the five schemes. Wapda chairman Muhammad Saeed told a parliamentary panel that the allocation was too small to keep work on schedule, and said the prime minister and the finance ministry had approved his request for more.

Dawn reported that the committee approved three summaries moved by the Defence Division. TechJuice put the defence total at nearly Rs84bn and itemised it: Rs54bn for three Defence Services projects, among them more than Rs31bn for the Special Security Divisions of the North and South, Rs11.88bn for Pakistan Navy projects and Rs10bn for internal security duties and allowances.

The committee approved Rs1.094bn for adding a Lineage L-1000 executive aircraft to the army's fleet and Rs29.139bn for Project Istaqlal. A separate Rs3.71bn went to Frontier Corps Balochistan (North) for helicopter maintenance, on a request from the Narcotics Control Division.

Gas supply to two Punjab fertiliser plants, Fatima and Agritech, will continue until Dec 31, subject to availability.

On a Commerce Division proposal, the ECC restricted imports of camera-enabled smart glasses and recommended that provincial governments and the Islamabad Capital Territory frame workplace rules for the use of such devices. It relaxed the Exploration and Production Rules so that 89 petroleum rights can be extended or renewed on prescribed conditions, and approved Rs1bn for village gasification in FY27, for villages within five kilometres of gas production fields.

The committee approved the transfer of Rs15.625bn to the Prime Minister's Austerity Fund 2026, drawn from savings on government austerity and fuel conservation measures.

TechJuice reported that in June the federal government took about Rs1.035 trillion from the four provinces outside the National Finance Commission framework, saying the money was for strategic national needs including water projects and national security.

How the reports differ

Both outlets carried the same headline figures: about Rs380bn in all, Rs275bn for water and roughly Rs84bn for defence. Dawn led with the water allocation and the armed forces total, and noted that three summaries from the Defence Division were approved without setting out what they contained. TechJuice named the five water projects, itemised the defence grants down to the army aircraft and Project Istaqlal, and carried the decisions on smart glasses, petroleum rights, village gasification and the austerity fund transfer. TechJuice alone reported the Rs1.035 trillion the federal government took from the provinces in June outside the National Finance Commission.

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