The ECC also approves technical supplementary grants of nearly Rs 950 million to the federal civilian armed forces
Amid heightened security threats and a rise in terrorist attacks, the government approved Rs50.9 billion ($180 million) for a series of defense initiatives aimed at strengthening national security.
The allocations were approved during a meeting of the Economic Coordination Committee (ECC) held in the Finance Department, chaired by Finance Minister Muhammad Aurangzeb. The committee reviewed several briefs on defense, internal security, food security and petroleum sector reforms.
According to the ministry, the ECC approved a Technical Supplementary Grant (TSG) of Rs 100.3 million to the Ministry of Home Affairs and Narcotics Control for repair and maintenance of defense equipment used by the federal civilian armed forces. Officials said the funds will ensure the operational readiness of equipment deployed in law enforcement and security operations.
The Committee also approved an additional Rs841.56 million as TSG for the Federal Civilian Armed Forces to support border control operations, internal security duties and maintenance of law and order. The funding is expected to strengthen the border infrastructure and strengthen nationwide security measures. The ECC approved a separate summary from the Defense Division and approved Rs 50 billion. as TSG for a number of approved projects from the Defense Service.
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The committee also reviewed a summary from the Ministry of National Food Security and Research regarding the liquidation of the Pakistan Agricultural Storage and Services Corporation. It approved the establishment of a Special Purpose Vehicle (SPV) with an initial paid-up capital of Rs1 million to manage the structured closure of the organization. The SPV will oversee procurement reforms, supply chain restructuring and efficiency improvements in the agricultural sector.
Separately, the Petroleum Division submitted proposals to extend license periods and award working interests for offshore oil and gas exploration blocks. The ECC approved the measures, which aim to encourage greater participation by foreign companies in Pakistan’s oil exploration sector by offering extended timelines and more flexible investment schemes.
The meeting was attended by Petroleum Minister Ali Pervaiz Malik, Planning Minister Ahsan Iqbal, Special Assistant to Prime Minister Haroon Akhtar Khan, as well as federal secretaries and senior officials from relevant ministries, departments and regulators. The decisions come as the government moves to strengthen security preparedness and encourage foreign investment in critical sectors at a time of heightened national concern.
