The Economic Coordination Committee (ECC) on Thursday reviewed Pakistan’s improving inflation outlook and approved a series of financial, development and social-sector measures, including billions of rupees in additional spending on education, energy, housing, tourism and defence-linked projects.
Chaired by Finance Minister Senator Muhammad Aurangzeb, the ECC meeting received a detailed briefing from Dr. Imtiaz Ahmad, Chief Economist at the Planning, Development and Special Initiatives Division, on the state of the economy and inflation trends.
According to the presentation, headline inflation has eased notably in the current fiscal year. It stood at 4.1 percent in July and 3.0 percent in August, with temporary pressures in September and October due to flood-related supply disruptions. Inflation then moderated to 6.1 percent in November, signalling a broader softening of price pressures.
The ECC noted that average inflation for July–November came in at 5.0 percent, significantly lower than 7.9 percent in the same period last year and in line with the government’s budgetary projections. Officials attributed the improvement to prudent fiscal management, targeted price-stabilisation steps and closer market monitoring.
Weekly data from the Sensitive Price Indicator showed a stabilizing trend in key items, with prices of 10 out of 51 essential commodities declining on a week-on-week basis, providing some relief to consumers.
The committee also observed that market supply conditions are gradually normalizing as post-flood agricultural cycles progress, and expressed confidence that continued policy coordination and strengthened monitoring would support further inflation containment in the coming months.
Following the briefing, the ECC cleared a lengthy agenda of spending and policy proposals.
It approved additional funds of Rs. 5,760.270 million through a Technical Supplementary Grant for the Federal Education and Professional Training Division. The money will fund the establishment of Danish Schools in Azad Jammu and Kashmir, Gilgit-Baltistan and Balochistan, as well as the implementation of the Prime Minister’s Youth Skill Development Program through NAVTTC.
However, the committee advised the division to explore public-private partnership models to enhance long-term sustainability, cautioning that continued reliance on regular budgetary support may be difficult.
The Ministry of Housing and Works secured a Technical Supplementary Grant of Rs. 5,190 million in favour of Pakistan Industrial Development Corporation Limited (PIDCL) for development schemes under the SDGs Achievement Program in Sindh and Khyber Pakhtunkhwa.
On a proposal from the Ministry of Inter-Provincial Coordination, the ECC approved Rs. 170.400 million in additional funding for the Pakistan Tourism Development Corporation’s budget for FY 2025-26.
The ministry was directed to prepare a comprehensive business plan clearly defining PTDC’s role, governance structure, staffing and alignment with the national tourism strategy, especially in light of ongoing consultancy and investment initiatives.
Aurangzeb stressed that any reversal of earlier decisions on PTDC must rest on a strong business case consistent with the government’s broader reform and rightsizing drive for state-owned enterprises.
Responding to a proposal from the Power Division, the ECC approved revisions to the eligibility criteria for funding under the Prime Minister’s Fan Replacement Programme to improve implementation and further promote energy efficiency and lower electricity consumption.
It also approved a Technical Supplementary Grant of Rs. 6.358 billion for SDGs-linked power schemes in Punjab, the Islamabad Capital Territory, Sindh and Khyber Pakhtunkhwa, along with another Rs. 200 billion in equity injections into distribution companies (DISCOs) to ease cash-flow constraints in the power sector.
Addressing humanitarian concerns, the committee cleared Rs. 4.775 billion for payments to 945 deserving families of missing persons identified by the Commission of Inquiry on Enforced Disappearances. The funds will be disbursed under the supervision of the Commission in line with approved procedures.
The ECC also approved Rs. 79 million for annual maintenance of helicopters operated by Frontier Corps Balochistan (North), Quetta, and Rs. 10.821 million for repair and maintenance of Pakistan Rangers (Sindh) helicopters during FY 2025-26.
On the recommendation of the Ministry of Interior and Narcotics Control, the committee endorsed a revised PC-I for the construction of 104 additional family suites for Members of Parliament, including servant quarters, and directed the Capital Development Authority to submit a comprehensive plan for the maintenance of its assets and preservation of building infrastructure.
In the defence and health-education space, the ECC sanctioned a Technical Supplementary Grant of Rs. 40 million for development schemes under the SDGs Achievement Programme on the proposal of the Ministry of Defence, and another Rs. 250 million for the operationalisation of King Hamad University of Nursing and Allied Medical Sciences in the current financial year.
The meeting was attended by the federal ministers for Power, Petroleum, Commerce, Planning, National Food Security and Research, and Investment, along with federal secretaries and senior officials from relevant ministries, divisions, departments and regulatory bodies.
