ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved a Technical Supplementary Grant (TSG) of Rs 100 billion for the Prime Minister’s Austerity Fund 2026 and procurement of up to one million metric tons of wheat for federal strategic reserves under the Interim National Wheat Policy (INWP) 2025-26.
The Committee met under the chairmanship of the Federal Minister for Finance and Revenue, Muhammad Aurangzeb.
The ECC considered and approved a summary submitted by the Finance Division seeking a Technical Supplementary Grant (TSG) of Rs. 100 billion for onward transfer to the Prime Minister’s Austerity Fund 2026. The Committee was informed that, in light of evolving developments in the Gulf region and their potential impact on international petroleum prices, the Prime Minister had directed the mobilization of Public Sector Development Programme (PSDP) resources to meet price differential requirements on petroleum products and to cushion consumers from price volatility.
During the discussion, the ECC noted that the proposed allocation is being met through rationalization and surrender of PSDP funds by various ministries and divisions, as coordinated by the Planning, Development, and Special Initiatives Division in consultation with Principal Accounting Officers. It was emphasized that the reallocation exercise has been undertaken to minimize disruption to priority and well-performing projects while creating the required fiscal space. The Committee also took note that initial surrenders have already been received, and the remaining adjustments are being finalized to meet the overall requirement.
The ECC also considered a summary submitted by the Ministry of National Food Security and Research regarding the procurement of wheat for federal strategic reserves under the Interim National Wheat Policy (INWP) 2025-26 through private sector participation. The Committee was apprised of the current supply and demand outlook, including production estimates, evolving weather conditions, and existing public and private stock positions. It was noted that while projections suggest improved crop conditions, uncertainties remain, warranting a cautious and calibrated approach to maintaining adequate reserves.
During deliberations, the ECC discussed the need to balance market stability, farmer support, and fiscal considerations, while avoiding premature interventions that could distort market signals or create uncertainty. The Committee also highlighted the importance of distinguishing between strategic and commercial reserves, ensuring that procurement decisions are aligned with actual requirements and do not impose unnecessary fiscal or storage burdens.
After a detailed discussion, the ECC approved the procurement of up to 1.0 million metric tons of wheat through a transparent and competitive process to be executed by the private sector, while directing that key elements, including financial implications, pricing benchmarks, and operational modalities, be further refined in consultation with the Finance Division before finalization. The Committee emphasized that procurement levels and financial commitments should remain flexible and responsive to updated crop assessments and market conditions.
The meeting was attended by Federal Minister for Commerce Jam Kamal Khan, Federal Minister for Investment Qaiser Ahmed Sheikh, and Federal Minister for National Food Security and Research Rana Tanveer Hussain, who all participated virtually, along with federal secretaries and senior officials from the relevant ministries, divisions, and regulatory authorities.
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved a Technical Supplementary Grant (TSG) of Rs 100 billion for the Prime Minister’s Austerity Fund 2026 and procurement of up to one million metric tons of wheat for federal strategic reserves under the Interim National Wheat Policy (INWP) 2025-26.
The Committee met under the chairmanship of the Federal Minister for Finance and Revenue, Muhammad Aurangzeb.
The ECC considered and approved a summary submitted by the Finance Division seeking a Technical Supplementary Grant (TSG) of Rs. 100 billion for onward transfer to the Prime Minister’s Austerity Fund 2026. The Committee was informed that, in light of evolving developments in the Gulf region and their potential impact on international petroleum prices, the Prime Minister had directed the mobilization of Public Sector Development Programme (PSDP) resources to meet price differential requirements on petroleum products and to cushion consumers from price volatility.
During the discussion, the ECC noted that the proposed allocation is being met through rationalization and surrender of PSDP funds by various ministries and divisions, as coordinated by the Planning, Development, and Special Initiatives Division in consultation with Principal Accounting Officers. It was emphasized that the reallocation exercise has been undertaken to minimize disruption to priority and well-performing projects while creating the required fiscal space. The Committee also took note that initial surrenders have already been received, and the remaining adjustments are being finalized to meet the overall requirement.
The ECC also considered a summary submitted by the Ministry of National Food Security and Research regarding the procurement of wheat for federal strategic reserves under the Interim National Wheat Policy (INWP) 2025-26 through private sector participation. The Committee was apprised of the current supply and demand outlook, including production estimates, evolving weather conditions, and existing public and private stock positions. It was noted that while projections suggest improved crop conditions, uncertainties remain, warranting a cautious and calibrated approach to maintaining adequate reserves.
During deliberations, the ECC discussed the need to balance market stability, farmer support, and fiscal considerations, while avoiding premature interventions that could distort market signals or create uncertainty. The Committee also highlighted the importance of distinguishing between strategic and commercial reserves, ensuring that procurement decisions are aligned with actual requirements and do not impose unnecessary fiscal or storage burdens.
After a detailed discussion, the ECC approved the procurement of up to 1.0 million metric tons of wheat through a transparent and competitive process to be executed by the private sector, while directing that key elements, including financial implications, pricing benchmarks, and operational modalities, be further refined in consultation with the Finance Division before finalization. The Committee emphasized that procurement levels and financial commitments should remain flexible and responsive to updated crop assessments and market conditions.
The meeting was attended by Federal Minister for Commerce Jam Kamal Khan, Federal Minister for Investment Qaiser Ahmed Sheikh, and Federal Minister for National Food Security and Research Rana Tanveer Hussain, who all participated virtually, along with federal secretaries and senior officials from the relevant ministries, divisions, and regulatory authorities.
American Dollar Exchange Rate