- ECC reallocates PSDP funds to mitigate impact on fuel price volatility.
- Reviews procurement of wheat under Interim National Wheat Policy.
- Emphasizes flexible procurement of wheat, which balances market stability.
The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved a Technical Supplementary Grant (TSG) of Rs 100 billion. to the Prime Minister’s Provident Fund 2026 and revised the wheat procurement strategy under the Interim National Wheat Policy (INWP) 2025-26.
The meeting was held under the chairmanship of Federal Finance and Revenue Minister Muhammad Aurangzeb, a press release said.
The ECC considered and approved a summary submitted by the finance department for a technical supplementary grant of Rs 100 billion for onward transfer to the PM’s Austerity Fund 2026.
The committee was informed that in view of developments in the Gulf region and their potential impact on international oil prices, the Prime Minister had directed the mobilization of resources from the Public Sector Development Program (PSDP) to meet price differential demands for petroleum products and to cushion consumers from price volatility.
During the discussion, the ECC noted that the proposed allocation is met through the rationalization and surrender of PSDP funds from various ministries and departments, as coordinated by the Department of Planning, Development and Special Initiatives in consultation with the Principal Accountants.
It was emphasized that the redistribution has been carried out to minimize disruption of prioritized and well-functioning projects, while at the same time creating the necessary fiscal space.
The Committee also noted that the initial submissions have already been received and that the remaining adjustments are being completed to meet the overall requirement.
The ECC also considered a summary submitted by the Ministry of National Food Security and Research regarding procurement of wheat for federal strategic reserves under INWP 2025-26 through private sector participation.
The committee was briefed on the current supply and demand outlook, including production estimates, changing weather conditions and existing public and private storage positions.
It was noted that while projections suggest improved crop conditions, uncertainty remains, warranting a cautious and calibrated approach to maintaining adequate reserves.
During the deliberations, the ECC discussed the need to balance market stability, farmer support and fiscal considerations, while avoiding premature interventions that could distort market signals or create uncertainty.
The committee also highlighted the importance of distinguishing between strategic and commercial reserves and ensuring that procurement decisions are aligned with actual requirements and do not impose unnecessary tax or inventory burdens.
After a detailed discussion, the ECC approved the procurement of up to one million metric tonnes of wheat through a transparent and competitive process to be carried out by the private sector, while key elements including financial implications, pricing benchmarks and operational modalities are to be further refined in consultation with the finance department before finalisation.
The Committee stressed that procurement levels and financial commitments should remain flexible and responsive to updated crop assessments and market conditions.
The meeting was attended by Federal Minister for Commerce Jam Kamal Khan, Federal Minister for Investments Qaiser Ahmed Sheikh and Federal Minister for National Food Security and Research Rana Tanveer Hussain, all of whom participated virtually along with federal secretaries and senior officials from the relevant ministries, departments and regulatory authorities.
