Islamabad, March 27, 2026 – The Economic Coordination Committee of the Cabinet on Thursday approved a substantial allocation of Rs100 billion for transfer to the Prime Minister’s Austerity Fund 2026. The decision was made during a high-level meeting chaired by Senator Muhammad Aurangzeb at the Finance Division.
The committee approved a Technical Supplementary Grant (TSG) of Rs100 billion as proposed by the Finance Division. The fund aims to mitigate the impact of global petroleum price fluctuations on domestic consumers, in line with directives from the Prime Minister to utilize Public Sector Development Programme (PSDP) resources for price differential support. The ECC emphasized that this reallocation of PSDP funds would be done carefully to minimize disruption to priority and well-performing development projects. Initial surrenders have been received from various ministries and divisions, while remaining adjustments are being finalized to meet the required fiscal space.
In addition to the austerity fund approval, the ECC reviewed a summary from the Ministry of National Food Security and Research regarding wheat procurement for federal strategic reserves under the Interim National Wheat Policy (INWP) 2025-26. The committee was briefed on current supply and demand trends, including production estimates, weather conditions, and stock positions. While crop forecasts appear favorable, the ECC stressed a cautious approach to maintain sufficient reserves without distorting market signals or creating fiscal burdens.
After deliberation, the ECC approved the procurement of up to 1.0 million metric tons of wheat through a transparent, competitive process led by the private sector. The committee directed further refinement of financial, pricing, and operational modalities in consultation with the Finance Division. It highlighted that procurement volumes and expenditures should remain flexible, responsive to updated crop assessments, and aligned with strategic reserve needs.
The meeting saw participation from federal ministers including Jam Kamal Khan, Qaiser Ahmed Sheikh, and Rana Tanveer Hussain, along with federal secretaries and senior officials from relevant ministries and regulatory authorities, some joining virtually.
This decisive step by the ECC reinforces the government’s proactive fiscal management strategy, aiming to safeguard consumers from price shocks while maintaining market stability and supporting strategic food security initiatives.