ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet on Wednesday approved supplementary grants worth approximately Rs380 billion, including Rs275 billion for five major water sector projects facing financial constraints and around Rs84 billion for the armed forces.
The meeting, chaired by Finance Minister Muhammad Aurangzeb, also approved the continuation of gas supplies to two Punjab-based fertiliser manufacturers, Fatima Fertilizer and Agritech, until December 31, subject to availability.
According to an official statement, the ECC approved three funding proposals submitted by the Defence Division. The first involved supplementary grants of Rs54 billion under three heads of the Defence Services project.
The allocation includes more than Rs31 billion for the Special Security Divisions of North and South (SSD-N and SSD-S), Rs11.88 billion for various Pakistan Navy projects and Rs10 billion for internal security duties and related allowances.
Under the second proposal, the committee approved Rs1.094 billion for the induction of a Lineage L-1000 executive aircraft into the Army’s fleet. It also sanctioned Rs29.139 billion for Project Istaqlal.
The government said these allocations would help meet essential operational requirements and strengthen national security priorities.
The ECC separately approved Rs275 billion in supplementary grants for five major water projects being implemented under the Ministry of Water Resources. These include the Diamer-Bhasha Dam, Mohmand Dam, Greater Karachi Water Supply Project (K-IV), Chashma Right Bank Canal and Kacchi Canal.
The funds will be released in phases according to Wapda’s requirements and its payment schedule for project execution.
The government had allocated approximately Rs103 billion for these projects in the 2026-27 federal budget. However, Wapda had repeatedly highlighted funding shortages that were affecting implementation.
Wapda Chairman Muhammad Saeed had informed a parliamentary committee that the budget allocation was insufficient to meet project requirements. He also said the prime minister and the Ministry of Finance had approved his requests for additional funding.
In June, the federal government secured around Rs1.035 trillion in additional contributions from the four provinces outside the National Finance Commission (NFC) framework to finance strategic national priorities, including water sector development and national security.
