The Economic Coordination Committee (ECC) of the Cabinet has granted approval for Rs275 billion in the form of Technical Supplementary Grants (TSG) for critical water sector projects, including the K-IV water supply project for Karachi, as well as the Bhasha and Dasu dams.
This funding will be sourced from the Rs1,034 billion provided by the provinces to the Centre under Article 164 of the 1973 Constitution. The federal government will release these resources in a phased manner, contingent upon revenue generation.
The ECC meeting was held on Wednesday at the Finance Division, chaired by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb. The committee reviewed 11 agenda items submitted by various ministries and divisions.
The ECC approved three summaries from the Defence Division for separate TSGs, including Rs54 billion for ongoing Defence Services projects, Rs1.094 billion for the induction of a Lineage L-1000 aircraft, and Rs29.139 billion for Project Istaqlal. These approvals are intended to meet essential operational requirements and support national security priorities.
Additionally, acting on a summary from the Interior and Narcotics Control Division, the committee approved a TSG of Rs3.71 million to cover helicopter maintenance requirements for the Frontier Corps Balochistan (North). The committee emphasized that these financial allocations are vital for the completion of infrastructure projects that hold strategic importance for the country's economic stability and water security.
Furthermore, the Ministry of Finance stated that the release of funds would be strictly monitored to ensure transparency and adherence to fiscal discipline throughout the execution of these projects. The meeting concluded with a directive to ensure that all relevant departments prioritize the timely utilization of these grants to avoid cost overruns in the future.
The government remains committed to addressing the energy and water crises through sustained investment in large-scale national projects. This decision reflects the current administration's focus on balancing fiscal constraints with the necessity of completing long-delayed development initiatives.