ECC approves Rs100bn grant for PM's Austerity Fund 2026

• ECC reallocates PSDP funds to cushion fuel price volatility impact.
• Reviews wheat procurement under Interim National Wheat Policy.
• Stresses flexible wheat procurement, balancing market stability.

The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved a Technical Supplementary Grant (TSG) of Rs100 billion for the Prime Minister's Austerity Fund 2026 and reviewed wheat procurement strategy under the Interim National Wheat Policy (INWP) 2025-26.

The meeting was held under the chairmanship of Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, said a news release.

The ECC considered and approved a summary submitted by the Finance Division seeking a technical supplementary grant of Rs100 billion for onward transfer to the PM'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 mobilisation 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 rationalisation 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 emphasised that the reallocation exercise has 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 are being finalised 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 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 one 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 finalisation.

The committee emphasised 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, all of whom participated virtually, along with federal secretaries and senior officials from the relevant ministries, divisions and regulatory authorities.