Pakistan approves billions in grants for energy, schools and disaster relief

The Economic Coordination Committee (ECC) of Pakistan has approved a series of technical supplementary grants (TSGs), including funds for energy cooperation, village gas schemes and disaster response.

The ECC of the Cabinet met at the Finance Division, chaired by the Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb.

The ECC approved a summary submitted by the Petroleum Division seeking a TSG of Rs. 13.1 million to meet Pakistan’s annual contribution to the International Energy Forum (IEF), saying continued membership was important for the country’s participation in global energy dialogue.

It also approved a summary of Rs. 3bn for gas supply schemes in villages located within a five-kilometre radius of gas production fields.

The schemes will be implemented through Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines Limited (SNGPL).

The ECC further approved a summary submitted by the Ministry of Federal Education and Professional Training for a TSG of Rs. 200 million during FY 2025–26 to facilitate payment of outstanding dues to teachers of Basic Education Community Schools (BECS).

The financial liability arises from court directives regarding payment of salary differentials in accordance with notified minimum wages for the period from August 2017 to June 2021.

The Committee also considered another summary from the same Ministry seeking exemption from the relending terms for an additional USD 4 million allocated to the Higher Education Commission (HEC) under the restructured Higher Education Development in Pakistan (HEDP) Project.

The ECC was informed that the World Bank reallocated these funds to the Investment Project Financing/Technical Assistance component, thereby increasing HEC’s share beyond the previously exempted USD 77 million.

The committee also approved Rs.3.63bn requested by the National Disaster Management Authority to reimburse costs incurred during Monsoon Response 2025 operations and for overseas humanitarian assistance.

Another Rs.1.3bn grant was approved for development projects under the government’s Sustainable Development Goals Achievement Programme (SAP) schemes during FY 2025–26.

In addition, the ECC approved the reform package and related financial measures, noting that the initiative is expected to contribute to improved sustainability of the power sector, reduce tariff pressures on consumers, and support broader sectoral reforms.

Separately, the committee approved Rs1.47bn for the Ministry of Information and Broadcasting to clear part of the outstanding liabilities linked to federal public information and awareness campaigns, out of a requested Rs2.231bn. The ministry has been asked to present the remaining requirement in the next quarter.