ECC approves Rs100bn supplementary grant for PM’s austerity fund

ISLAMABAD: The Economic Coordination Committee (ECC) on Thursday approved a Rs100 billion supplementary grant for the prime minister’s austerity fund created to finance the petroleum pricing subsidy.

Finance Minister Muhammad Aurangzeb presided over the ECC meeting, which approved a summary submitted by the Ministry of Finance, seeking a Technical Supplementary Grant (TSG) of Rs100bn for onward transfer to the austerity fund.

“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 mobilisation of Public Sector Development Programme (PSDP) resources to meet price differential requirements on petroleum products and to cushion consumers from price volatility,” an official statement said.

During the discussion, the ECC noted that the proposed allocation was being met through rationalisation and surrender of PSDP funds by various ministries and divisions, as coordinated by the Ministry of Planning, Development and Special Initiatives in consultation with Principal Accounting Officers of the ministries concerned, it added.

It was emphasised that the reallocation exercise had been undertaken to minimise 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 were being finalised to meet the overall requirement. It was noted that PSDP had already been cut by Rs100bn to Rs900bn for the purpose,” the statement said.

The government has already notified the crowdfunding of the opening of the Prime Minister’s Austerity Fund 2026 to mitigate the impact of the extraordinary spike in diesel and petrol prices due to the war in the Gulf region.

All proceeds on account of the said fund would be received at all branches of the State Bank of Pakistan (SBP),........

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