Islamabad(newsviews) The Economic Coordination Committee (ECC) of the cabinet on Wednesday approved supplementary grants worth about Rs380 billion, including Rs275bn for five major water projects facing financial constraints, and around Rs84bn for the country’s armed forces.

A meeting of the ECC, presided over by Finance Minister Muhammad Aurangzeb, also allowed the continuation of gas supply to two Punjab-based fertiliser plants — Fatima and Agritech — until Dec 31, subject to availability.

An official statement said the ECC approved three summaries submitted by the Defence Division. The first summary pertained to supplementary grants of Rs54bn under three different heads of the Defence Services project. These included over Rs31bn for the Special Security Divisions of North and South (SSD-N and SSD-S), Rs11.88bn for various Pakistan Navy projects and Rs10bn for internal security duties and allowances.

The second summary approved Rs1.094bn for the induction of a luxury executive jet (Lineage L-1000 aircraft) into the army fleet, while the third allocated Rs29.139bn for Project Istaqlal. “The approvals are aimed at meeting essential operational requirements and supporting national security priorities,” the official statement said.

Approves Rs275bn for five water projects, Rs84bn for armed forces

The ECC also approved supplementary grants of Rs275bn for important water sector projects currently under implementation and facing financial constraints under the Ministry of Water Resources. The funds will be specifically allocated for the Diamer-Bhasha Dam, Mohmand Dam, Greater Karachi Water Supply (K-IV), Chashma Right Bank Canal and Kacchi Canal. They will be disbursed gradually in line with Wapda’s requirements under its payment plan for project implementation.

The government had allocated about Rs103bn for these water sector projects in the 2026-27 budget, but Wapda had been complaining of implementation difficulties due to financial constraints. Wapda Chairman Muhammad Saeed had told a parliamentary panel that the allocated funds were insufficient and that his requests for the provision of adequate funds had been approved by the prime minister and the Ministry of Finance.

The federal government had secured about Rs1.035 trillion in additional funds from the four provinces outside the National Finance Commission in June to meet strategic national requirements, including those relating to the water sector and national security.

“The allocation will support the development of key water infrastructure and help advance the implementation of ongoing projects,” the statement said.

The ECC also approved Rs3.71bn for the Frontier Corps Balochistan (North), on the request of the Narcotics Control Division, to meet the maintenance requirements of helicopters.

The committee further approved the transfer of Rs15.625bn in savings generated through austerity and fuel conservation measures to the Prime Minister’s Austerity Fund 2026, reinforcing the government’s commitment to fiscal discipline and prudent management of public resources, the statement said.

On a summary submitted by the Commerce Division, the committee approved restrictions on the import of camera-enabled smart glasses. It also recommended that provincial governments and the Islamabad Capital Territory develop appropriate workplace regulations to govern the use of such devices.

The ECC approved relaxation of the applicable Exploration and Production (E&P) Rules for the extension and renewal of 89 petroleum rights, subject to fulfilment of prescribed conditions. It also approved a grant of Rs1bn for the gasification of villages located within a five-kilometre radius of gas production fields during FY27. The approval will facilitate the development of gas infrastructure and improve access to natural gas in communities near producing fields.