ISLAMABAD (MNN); The Economic Coordination Committee on Thursday approved a Rs100 billion supplementary grant for the prime minister’s austerity fund aimed at financing petroleum subsidies.
The meeting, chaired by Finance Minister Muhammad Aurangzeb, endorsed a summary by the Finance Ministry seeking a Technical Supplementary Grant to support fuel price relief measures.
According to an official statement, the move comes amid evolving developments in the Gulf region that could impact global oil prices. The prime minister had directed the use of Public Sector Development Programme resources to manage price differentials and protect consumers from volatility.
The ECC noted that the allocation would be arranged through reallocation and surrender of PSDP funds by various ministries, coordinated by the Planning Ministry. It stressed that the exercise aims to minimise disruption to key development projects while creating fiscal space.
Officials informed the committee that initial fund adjustments had already been made, with the PSDP reduced by Rs100bn to Rs900bn for this purpose.
The government has also launched the Prime Minister’s Austerity Fund 2026 to address rising fuel costs caused by regional conflict. Contributions will be accepted through the State Bank of Pakistan, National Bank of Pakistan, and other scheduled banks, as well as through Pakistani missions abroad.
The fund will receive donations from both domestic and international contributors, with accounts maintained by relevant authorities and administered by the Finance Ministry.
Separately, the ECC approved the procurement of up to one million tonnes of wheat, directing that the process be carried out transparently through private-sector participation.
The proposal was presented by the Ministry of National Food Security and Research, which had initially sought procurement of three million tonnes under the Interim National Wheat Policy 2025-26.
The committee reviewed supply and demand projections, crop conditions, and stock levels, noting improved outlooks but continued uncertainties.
It emphasised balancing market stability, farmer support, and fiscal responsibility, while avoiding premature interventions that could disrupt market signals.
The ECC also highlighted the importance of distinguishing between strategic and commercial reserves, deciding to limit procurement to one million tonnes for now. It directed further refinement of financial and operational details before final approval.
