The ECC also approves additional technical grants of nearly Rs950 million for the federal civilian armed forces.
Amid heightened security threats and a surge in terrorist attacks, the government approved 50.9 billion rupees ($180 million) for a series of defense initiatives aimed at strengthening national security.
The allocations were approved at a meeting of the Economic Coordination Committee (ECC) held at the Finance Division, chaired by Finance Minister Muhammad Aurangzeb. The committee reviewed several summaries regarding defense, homeland security, food security and oil sector reforms.
According to the ministry, the ECC has approved a technical supplementary grant (TSG) of Rs 100.3 million for the Ministry of Interior and Narcotics Control for the repair and maintenance of defense equipment used by the federal civilian armed forces. Officials said the funds will ensure the operational availability of equipment deployed in law enforcement and security operations.
The committee also approved an additional amount of Rs 841.56 million as TSG for federal civilian armed forces to support border control operations, internal security tasks and maintenance of law and order. The funding is expected to strengthen border infrastructure and strengthen security measures nationwide. The ECC cleared a separate summary from the Defense Division, approving Rs 50 billion as TSG for a series of approved projects of the defense services.
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The committee further considered 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 Rs 1 million to manage the structured closure of the organization. The SPV will oversee public procurement reforms, supply chain restructuring and efficiency improvements in the agricultural sector.
Separately, the Petroleum Division has presented proposals to extend license periods and award direct stakes in offshore oil and gas exploration blocks. The ECC approved these measures, which aim to encourage greater participation of foreign companies in Pakistan’s oil exploration sector by offering longer lead times and more flexible investment terms.
The meeting was attended by Petroleum Minister Ali Pervaiz Malik, Planning Minister Ahsan Iqbal, Special Assistant to the Prime Minister Haroon Akhtar Khan, as well as federal secretaries and senior officials of the relevant ministries, divisions and regulators. The moves come as the government works to strengthen security preparedness and encourage foreign investment in critical sectors during a period of heightened national concern.
