The Economic Coordination Committee (ECC) of the cabinet has approved Rs1.94 billion for the induction of a Lineage L-1000 luxury executive jet into the Pakistan Army fleet as part of supplementary grants worth around Rs380 billion.
The approval came during an ECC meeting chaired by Finance Minister Muhammad Aurangzeb on Wednesday, where the committee cleared three summaries submitted by the Defence Division.
The first summary involved supplementary grants of Rs54 billion under three heads of the Defence Services project. This included more than Rs31 billion for the Special Security Divisions of North and South (SSD-N and SSD-S), Rs11.88 billion for various Pakistan Navy projects and Rs10 billion for internal security duties and allowances.
The second summary sought Rs1.94 billion for the induction of the Lineage L-1000 aircraft into the army fleet. The committee approved the allocation as part of its decisions on defence-related expenditure.
The third summary allocated Rs29.139 billion for Project Istaqlal.
According to an official statement, the approvals aimed to meet essential operational requirements and support national security priorities.
Apart from defence allocations, the ECC approved Rs275 billion in supplementary grants for five water sector projects facing financial constraints under the Ministry of Water Resources.
The funds will go towards the Diamer-Bhasha Dam, Mohmand Dam, Greater Karachi Water Supply (K-IV), Chashma Right Bank Canal and Kacchi Canal.
The government will release the amount gradually according to the Water and Power Development Authority’s (Wapda) requirements under its payment plan for project implementation.
The government had allocated around Rs103 billion for these projects in the 2026-27 budget. However, Wapda had raised concerns over implementation difficulties due to a shortage of funds.
The ECC also approved Rs3.71 billion for Frontier Corps Balochistan (North) to meet helicopter maintenance requirements on the request of the Narcotics Control Division.
The committee further approved the transfer of Rs15.625 billion in savings from austerity and fuel conservation measures to the Prime Minister’s Austerity Fund 2026.
The committee also approved relaxation of the applicable Exploration and Production (E&P) Rules for the extension and renewal of 89 petroleum rights, subject to prescribed conditions.
In addition, it cleared a Rs1 billion grant for the gasification of villages located within a five-kilometre radius of gas production fields during FY27.
The ECC also allowed continued gas supply to two fertiliser plants in Punjab, Fatima and Agritech, until December 31, subject to gas availability.
