The Economic Coordination Committee (ECC), chaired by Finance Minister Muhammad Aurangzeb, approved more than Rs40 billion in supplementary grants and authorised a Rs100 billion sovereign-guarantee-backed financing facility for Pakistan State Oil (PSO) ahead of the 2026-27 federal budget.

The financing arrangement aims to help PSO manage liquidity pressures caused by more than Rs904 billion in receivables owed by state-owned enterprises, particularly gas companies, and to ensure uninterrupted oil supplies.The ECC also expanded the scope of special honoraria for officials involved in federal budget preparation.

Previously available to employees of selected ministries and institutions, the benefit was extended to the Law and Justice Division, Commerce Division and the Accountant General of Pakistan Revenue.In addition, the committee approved Rs7.026 billion for the Sustainable Development Goals Achievement Programme and cleared Rs10.15 billion for the Pakistan Navy’s Hangor Project under the Rafale Aircraft and Force Development Package 2030.

Several other grants were approved, including funding for security-related projects, Safe City Islamabad expansion, Pakistan Coast Guards, Pakistan Television Corporation salary payments, telecom infrastructure in Gilgit-Baltistan, parliamentary affairs expenditures, urban infrastructure projects in Karachi and Hyderabad, Pakistan Mint modernisation, and support for Gilgit-Baltistan ahead of elections.The ECC also reviewed the long-running issue of petroleum levy collections allegedly withheld by Cnergyico since 2019.

A new committee led by the finance secretary was formed to strengthen recovery efforts and address concerns about conflicts of interest in the previous arrangement.

Furthermore, the committee approved the budget estimates of IPO-Pakistan and measures related to the operational continuity of Engro Vopak Terminal Limited.

Overall, the meeting focused on financing state entities, approving development and security expenditures, and addressing fiscal and administrative matters ahead of the upcoming federal budget.