ECC Approves Rs1.09 Billion Grant for Army Executive Jet, Rs275 Billion for Water Projects

The Economic Coordination Committee (ECC) of the cabinet, chaired by Finance Minister Muhammad Aurangzeb, has approved a grant of Rs1.094 billion for the induction of a Lineage L-1000 executive jet into the Pakistan Army fleet. The decision was part of a broader package of supplementary grants totaling approximately Rs380 billion cleared during the meeting, according to an official statement.

The ECC also approved supplementary grants for several defense-related projects, including Rs54 billion under three heads of the Defense Services project, over Rs31 billion for the Special Security Divisions of North and South, Rs11.88 billion for various Pakistan Navy projects, Rs10 billion for internal security duties and allowances, and Rs29.139 billion for Project Istaqlal. Additionally, Rs3.71 billion was allocated for the Frontier Corps Balochistan (North) to meet helicopter maintenance requirements.

A major portion of the funds—Rs275 billion—was earmarked for water sector projects facing financial constraints under the Ministry of Water Resources. These include the Diamer-Bhasha Dam, Mohmand Dam, Greater Karachi Water Supply (K-IV), Chashma Right Bank Canal, and Kacchi Canal. The funds will be disbursed gradually in line with WAPDA’s payment plan. The government had initially allocated about Rs103 billion for these projects in the 2026-27 budget, but WAPDA had flagged implementation difficulties due to insufficient funding.

The ECC also allowed the continuation of gas supply to two Punjab-based fertilizer plants, Fatima and Agritech, until December 31, subject to availability. It approved the transfer of Rs15.625 billion in savings from austerity and fuel conservation measures to the Prime Minister’s Austerity Fund 2026. On a summary from the Commerce Division, the committee imposed restrictions on the import of camera-enabled smart glasses and recommended that provincial governments and the Islamabad Capital Territory develop workplace regulations for such devices.

Furthermore, the ECC approved relaxation of Exploration and Production (E&P) Rules for the extension and renewal of 89 petroleum rights, subject to prescribed conditions, and sanctioned a grant of Rs1 billion for the gasification of villages within a five-kilometer radius of gas production fields during FY27. The decisions come as the federal government secured about Rs1.035 trillion in additional funds from the four provinces outside the National Finance Commission in June to meet strategic national requirements.