ECC clears only Rs2b for local polls

Holds back Rs16.5b; sanctions Rs300m for PM Office, staff colony refurbishment Economic Coordination Committee (ECC) The government on Thursday approved Rs18.5 billion for holding local government elections, mainly in Punjab and Islamabad, but authorised the release of only Rs2 billion despite a request from the Election Commission of Pakistan (ECP) to release all the funds. The Economic Coordination Committee (ECC) of the cabinet that approved these funds also sanctioned a Rs300 million grant for refurbishment of the Prime Minister's Office and his staff colony at a time when the government has banned purchases under the austerity policy. In total, the ECC approved nearly Rs57 billion worth of supplementary grants in the fourth month of the current fiscal year. Finance Minister Muhammad Aurangzeb chaired the ECC meeting, which, according to a few participants, was held in haste and insufficient time was spent discussing agenda items, particularly the funds for local government elections. According to a press statement issued by the finance ministry, on a summary submitted by the ECP, the committee approved a grant of Rs596.2 million for local government by-elections in Sindh and Balochistan, and delimitation activities in Punjab. It added that the ECC also considered a separate ECP summary regarding the allocation of Rs17.8 billion for the procurement of materials for local government elections in Punjab, Khyber-Pakhtunkhwa, ICT and Cantonment Boards across Pakistan. The committee approved the immediate release of Rs2 billion through a supplementary grant, according to the finance ministry. However, the ECP demanded that the entire amount should immediately be released, as it needed roughly Rs12 billion for holding local government elections in Punjab in December. But the ECC chairman decided to give the money in tranches, although the Constitution says the federal government does not have the right to reduce any demand from the ECP. Finance ministry officials were of the view that the ECC did not reduce the demand, and it only decided to give it in tranches that will not impact the spending. The ECP was of the view that it needed another Rs4 billion next week to hold local government elections. The ECC approved a supplementary grant of Rs300 million for the Capital Development Authority (CDA) to meet essential repair and maintenance expenditure relating to the Prime Minister's Office and Prime Minister's Staff Colony, according to the finance ministry. The ministry did not state whether the money has been approved in relaxation of the austerity policy that bans any procurements, other than for development purposes. The ECC approved the imposition of 11% additional customs duty on import of tyres to protect the local industry. It slapped 11% additional customs duty on the import of parts of motorcycles and 31% if the manufacturers import these parts instead of locally producing them. The ECC approved a summary submitted by the Finance Division regarding a financing framework developed by the State Bank of Pakistan to facilitate the inclusion of Agency Financial Institutions (AFIs) under the government's existing risk coverage schemes for small enterprises and small farmers through wholesale and agency arrangements. The framework aims to broaden access to finance by leveraging the outreach of eligible microfinance and non-banking financial institutions. The committee also approved a Finance Division summary for an addendum to the Second Supplemental Trust Deed of the Credit Guarantee Trust Fund (CGTF), expanding its scope to facilitate more effective utilisation of the existing credit guarantee facility to support affordable housing finance. The ECC approved Rs2 billion for the Small and Medium Enterprises Development Authority (Smeda), on a summary submitted by the Industries and Production Division, to facilitate implementation of Smeda's approved Business Plan as per the vision of the prime minister. The committee further approved Rs11.3 billion, on a summary submitted by the Industries and Production Division, to meet the immediate funding requirements of Utility Stores Corporation (USC) and facilitate completion of its closure process. On a summary submitted by the Privatisation Division, the ECC approved Rs8 billion for the Public Private Partnership Authority. The allocation will support the development and implementation of infrastructure projects through public-private partnerships, it added. The ECC approved Rs10 billion for the Ministry of Railways, to provide budgetary cover for the Thar Coal Rail Connectivity Project, facilitating the utilisation of indigenous Thar coal for power generation and other industrial sectors. The committee approved Rs150 million in favour of the Ministry of Climate Change and Environmental Coordination to meet requirements related to Pakistan's participation in the 31st Session of the Conference of Parties (COP31), scheduled to be held in Antalya, Turkiye. The ECC also approved Rs934.5 million for the Pakistan Sports Endowment Fund Scheme, 2025, in favour of the Ministry of Inter-Provincial Coordination. The allocation will support operationalisation of the Fund in accordance with its approved framework and contribute to the development of the national sports ecosystem. On a summary submitted by the Ministry of Federal Education and Professional Training, the committee approved Rs1.7 billion for the prime minister's initiative for short-term training of 1,000 agricultural professionals in China. The initiative aims to strengthen expertise in agricultural technology, innovation and research. The committee also considered a summary submitted by the Ministry of National Food Security and Research regarding adjustment of Passco's outstanding receivables from provincial governments through at-source deductions. The matter was deferred, with directions to bring the proposal back after further consultation with the relevant stakeholders. The committee approved Rs4 billion for Pakistan Revenue Automation (Pvt) Limited (PRAL), on a summary submitted by the Revenue Division, to support ongoing restructuring and implementation of FBR's Transformation Plan. The ECC approved a summary submitted by the Ministry of Commerce regarding investment of Export Development Fund (EDF) resources in government securities, in accordance with the approved framework, to ensure productive utilisation of the Fund's resources and sustainable financial management.