Islamabad, December 18, 2025 : The Economic Coordination Committee (ECC) of the Cabinet met today under the chairmanship of Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb and reviewed the overall economic situation, with particular focus on inflation trends and food security, before approving a wide range of financial, development and social sector proposals for the current financial year 2025-26.
Earlier, Dr. Imtiaz Ahmad, Chief Economist, Planning, Development and Special Initiatives Division, presented a detailed overview of the prevailing economic conditions. The Committee was briefed that the overall inflation situation has shown marked improvement during the ongoing fiscal year, reflecting enhanced price stability and effective macroeconomic management. Headline inflation remained at relatively low levels in the initial months of the fiscal year, standing at 4.1 percent in July and 3.0 percent in August. Although temporary pressures emerged during September and October due to flood-related supply disruptions, inflation moderated subsequently and declined to 6.1 percent in November, indicating a clear easing of price pressures.
The Committee noted that cumulative inflation for the period July–November averaged 5.0 percent, significantly lower than 7.9 percent recorded during the corresponding period of the previous year. This improvement was attributed to prudent fiscal management, effective price stabilization measures and close market monitoring, while remaining within the government’s budgetary projections. Weekly price monitoring through the Sensitive Price Indicator (SPI) was also reviewed, which showed a stabilizing trend in essential commodities. Recent data indicated that prices of 10 out of 51 essential commodities declined on a week-on-week basis, providing tangible relief to consumers.
The Committee further observed that market supply conditions are gradually normalizing as post-flood agricultural cycles progress, and expressed confidence that continued policy coordination and strengthened monitoring mechanisms would further support inflation containment in the coming months.
Following the economic briefing, the ECC considered and approved various agenda items. The Committee approved additional funds amounting to Rs. 5,760.270 million, proposed by the Federal Education and Professional Training Division, through a Technical Supplementary Grant for the establishment of Danish Schools in Azad Jammu and Kashmir, Gilgit-Baltistan and Balochistan, as well as for implementation of the Prime Minister’s Youth Skill Development Programme through NAVTTC. The Committee, however, advised the Division to explore public-private partnership models to enhance sustainability, noting that continued reliance on regular government funding may be challenging in the future.
The ECC also approved a Technical Supplementary Grant of Rs. 5,190.000 million, proposed by the Ministry of Housing and Works, in favour of PIDCL for execution of development schemes under the SDGs Achievement Programme in the provinces of Sindh and Khyber Pakhtunkhwa.
On a proposal submitted by the Ministry of Inter-Provincial Coordination, the Committee approved a Technical Supplementary Grant of Rs. 170.400 million for the Pakistan Tourism Development Corporation’s budget for FY 2025-26. The Ministry was directed to prepare a comprehensive business plan clearly outlining PTDC’s proposed role, governance framework, staffing requirements and alignment with the national tourism strategy, particularly in view of ongoing consultancy studies and international investment initiatives. The Chair emphasized that any reconsideration of earlier decisions regarding PTDC must be supported by a strong business case consistent with the government’s broader reform and rightsizing agenda for state-owned enterprises.
The Committee further approved, on the proposal of the Power Division, a revision and readjustment of the eligibility criteria for funding under the Prime Minister’s Fan Replacement Programme to ensure efficient implementation of the scheme and to further promote energy efficiency and reduction in electricity consumption.
In addition, the ECC approved a Technical Supplementary Grant of Rs. 6.358 billion in favour of the Power Division for execution of SDGs Achievement Programme schemes in Punjab, Islamabad Capital Territory, Sindh and Khyber Pakhtunkhwa, along with another Technical Supplementary Grant amounting to Rs. 200 billion under the head of Government of Pakistan investment in DISCOs’ equity to address cash flow constraints in the power sector.
Addressing humanitarian concerns, the ECC approved, on the proposal of the Ministry of Interior and Narcotics Control, the provision of Rs. 4.775 billion for payment to 945 deserving families of missing persons, as identified by the Commission of Inquiry on Enforced Disappearances. The disbursement will be made under the supervision of the Commission in accordance with approved procedures.
The Committee also approved a Technical Supplementary Grant of Rs. 79.00 million for annual maintenance of helicopters of Frontier Corps Balochistan (North), Quetta, and another Technical Supplementary Grant of Rs. 10.821 million for repair and maintenance of helicopters of Pakistan Rangers (Sindh) during FY 2025-26.
Furthermore, on the proposal of the Ministry of Interior and Narcotics Control, the ECC approved the revised PC-I for construction of 104 additional family suites for Members of Parliament, including servant quarters, and directed the Capital Development Authority to submit a comprehensive plan for maintenance of its assets and preservation of building infrastructure.
In the defence sector, the ECC approved, on the proposal of the Ministry of Defence, a Technical Supplementary Grant of Rs. 40 million for execution of development schemes under the SDGs Achievement Programme, as well as a Technical Supplementary Grant of Rs. 250 million for the operationalization of King Hamad University of Nursing and Allied Medical Sciences during the current financial year.
The meeting was attended by the Federal Ministers for Power, Petroleum, Commerce, Planning, Development and Special Initiatives, National Food Security and Research, and Investment, along with federal secretaries and senior officials from relevant ministries, divisions, departments and regulatory bodies.
Finance minister , M Aurangzeb, is telling masses that Pakistan is all about to take off with improve economy , but his claims are unfounded and without any facts on ground. Pakistanis are moaning under rising pressure of price-hike for years now and they do not have two ends to meet a one meal a day. International institutional like IMF and the World Bank are negating Finance minister ‘a claims but he hardly care for any opposite views. Since Mr Aurangzeb is a banker by profession, he is convinced in feeding his views for public consumption without feeling their pains they are facing due to killing inflation.