Islamabad
The Economic Coordination Committee (ECC) of the Cabinet, chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, today reviewed Pakistan’s economic situation with a focus on inflation trends and food security, and approved a range of financial, development, and social sector measures for the current fiscal year 2025-26.
Dr. Imtiaz Ahmad, Chief Economist at the Planning, Development and Special Initiatives Division, presented an overview of the prevailing economic conditions. The ECC noted significant improvement in inflation during the ongoing fiscal year, reflecting enhanced price stability and effective macroeconomic management. Headline inflation stood at 4.1% in July and 3.0% in August. While temporary pressures emerged in September and October due to flood-related supply disruptions, inflation moderated to 6.1% in November. Cumulative inflation for July–November averaged 5.0%, down from 7.9% in the same period last year. Weekly monitoring through the Sensitive Price Indicator showed stabilizing trends, with 10 of 51 essential commodity prices declining week-on-week.
The ECC observed that market supply conditions are gradually normalizing post-flood and expressed confidence that continued policy coordination and strengthened monitoring will further support inflation containment.
Several key proposals were approved:
Education and Skills Development: Rs. 5.76 billion for Danish Schools in Azad Jammu & Kashmir, Gilgit-Baltistan, and Balochistan, and for the Prime Minister’s Youth Skill Development Programme through NAVTTC, with recommendations to explore public-private partnership models.
Housing and SDGs Projects: Rs. 5.19 billion for the Ministry of Housing and Works to execute development schemes under the SDGs Achievement Programme in Sindh and Khyber Pakhtunkhwa.
Tourism Development: Rs. 170.4 million for Pakistan Tourism Development Corporation (PTDC), with directives to prepare a comprehensive business plan aligned with national tourism strategy and reform agenda.
Energy Sector: Revision of eligibility criteria under the Prime Minister’s Fan Replacement Programme, Rs. 6.358 billion for SDGs schemes in multiple regions, and Rs. 200 billion in Government investment in DISCOs’ equity to address cash flow challenges.
Humanitarian Support: Rs. 4.775 billion for 945 families of missing persons under the supervision of the Commission of Inquiry on Enforced Disappearances.
Security Sector: Rs. 79 million for Frontier Corps Balochistan (North) helicopter maintenance, Rs. 10.821 million for Pakistan Rangers (Sindh) helicopter repairs, and Rs. 40 million for defence SDGs projects.
Parliamentary Infrastructure: Rs. 250 million for operationalization of King Hamad University of Nursing and Allied Medical Sciences, and approval for 104 additional family suites for Members of Parliament including servant quarters.
The meeting was attended by federal ministers, secretaries, and senior officials from relevant ministries, divisions, departments, and regulatory bodies.
