The Economic Coordination Committee (ECC) of the Cabinet approved on Thursday a summary submitted by the Finance Division seeking a technical supplementary grant (TSG) of Rs100 billion for onward transfer to the Prime Minister’s Austerity Fund 2026.

The ECC met under the chairmanship of Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb.

“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 Prime Minister’s Austerity Fund 2026,” the Finance Division said in a statement.

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 the 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 was 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 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 had already been received and the remaining adjustments were being finalised to meet the overall requirement.

The ECC also considered a summary submitted by the Ministry of National Food Security and Research regarding procurement of wheat for federal strategic reserves under the Interim National Wheat Policy (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 suggested 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, according to the statement.

The committee also highlighted the importance of distinguishing between strategic and commercial reserves, ensuring that procurement decisions were aligned with actual requirements and did not impose unnecessary fiscal or storage burdens.

The ECC approved procurement of up to 1.0 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, who all participated virtually, along with federal secretaries and senior officials from the relevant ministries, divisions, and regulatory authorities.