Pakistan ECC Approves 40 Billion Rupees in Grants, 100 Billion Rupee Facility for PSO

Pakistan's Economic Coordination Committee (ECC) has approved significant financial measures, including over 40 billion rupees in supplementary grants and a 100 billion rupee financing facility backed by a sovereign guarantee for the Pakistan State Oil (PSO). This comes as PSO grapples with substantial financial challenges, reportedly owed over 900 billion rupees by other state-owned enterprises.

The approval of the financing facility aims to address PSO's liquidity constraints and ensure the uninterrupted supply of oil. The company's precarious financial situation, stemming from significant receivables, has raised concerns about its ability to manage supply challenges amidst current geopolitical conditions.

Despite financial constraints and IMF restrictions impacting development spending, the ECC, chaired by Finance Minister Muhammad Aurangzeb, also sanctioned 10 billion rupees for parliamentarians' development schemes. Furthermore, the scope of special honoraria, equivalent to up to six months' additional salary, was expanded to include more ministries and departments involved in the federal budget preparations.

Additional allocations were made for various projects, including 7.026 billion rupees for the Sustainable Development Goals Achievement Programme (SAP) to ensure project continuity and prevent cost escalations. The Ministry of Defence also received 10.15 billion rupees for the Pakistan Navy's Hangor Project under the RAFDP-2030 package.