Pakistan approves Rs100 billion fund to cushion petrol price shocks
- By Web Desk -
- Mar 27, 2026
ISLAMABAD: The Economic Coordination Committee (ECC) of Pakistan has approved a summary of Rs. 100 billion technical supplementary grants (TSG) submitted by the finance division to help shield consumers from potential rises in petroleum prices.
The ECC meeting, chaired by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, took place at the Finance Division on Friday. Officials said the funds would be transferred to the Prime Minister’s Austerity Fund 2026 through a Technical Supplementary Grant.
The ECC was informed that, in light of evolving developments in the Gulf region and their potential impact on international petroleum prices, the Prime Minister had directed the mobilization of Public Sector Development Program (PSDP) resources to meet price differential requirements on petroleum products and to cushion consumers from price volatility.
During the discussion, the ECC noted that the proposed allocation is being met through rationalisation and surrender of PSDP funds by various ministries and divisions, as coordinated by the Planning, Development and Special Initiatives Division in consultation with Principal Accounting Officers.
Separately, the ECC has also approved plans to procure up to one million metric tonnes of wheat for strategic reserves under the Interim National Wheat Policy (INWP) 2025–26. The summary submitted by the Ministry of National Food Security and Research regarding the procurement of wheat through private sector participation.
The procurement will be carried out by the private sector through a transparent and competitive process, according to officials. However, the committee directed that key elements, including financial implications, pricing benchmarks, and operational modalities, be further refined in consultation with the Finance Division before finalisation.
The Committee emphasized that procurement levels and financial commitments should remain flexible and responsive to updated crop assessments and market conditions.