The Economic Coordination Committee (ECC) of the Cabinet on Monday was informed price movements of essential commodities are stabilizing, moderating inflation dynamics, mere hours before the State Bank of Pakistan raised the interest rate by 1%.
Chaired by Finance Minister Muhammad Aurangzeb, the ECC meeting received a briefing by the chief economist of the Planning Ministry. It was informed that prices are stabilizing through coordinated efforts of the federal, provincial, and district governments, with the National Price Monitoring Committee strengthening market oversight and enabling timely interventions.
The presentation noted that inflationary pressures, while present, are showing signs of moderation, with emerging trends pointing toward improved price stability. Weekly monitoring data reflects that, after a temporary uptick, the pace of increase in prices of essential items has slowed, with recent weeks showing a declining trend in the Sensitive Price Index. A number of essential commodities, including tomatoes, onions, wheat flour, garlic, LPG have witnessed price reductions, while sugar has also shown a downward trend. At the same time, prices of items such as eggs, chicken, pulses, cooking oil, bread, and milk have recorded only marginal increases, indicating a broader easing in price pressures.
The ECC was further told that prices of key food and household items are gradually converging toward more stable levels, with some commodities returning close to pre-volatility benchmarks. This trend has been attributed to effective administrative measures, improved supply chain monitoring, and enhanced coordination between federal and provincial authorities. Regular data sharing and targeted interventions at the district level have strengthened the government’s ability to respond swiftly to localized disruptions and prevent undue price escalation.
Overall, the ECC noted with satisfaction that the combination of timely policy responses, strengthened monitoring mechanisms, and coordinated implementation has begun to yield positive outcomes, with clear indications of stabilization in the prices of essential items and improved market sentiment. It emphasized the importance of sustaining these efforts to consolidate gains and ensure continued price stability in the coming months, in line with the government’s commitment to protecting consumers and maintaining macroeconomic balance.
During the meeting, the ECC also took up regular agenda items, approving several proposals, including Technical Supplementary Grants across ministries and divisions. Among the approvals granted were Rs. 100 million for the Cannabis Control and Regulatory Authority (CCRA); Rs. 311 million for the Government of Balochistan under the Finance Division to support an incentive package for PAS/PSP officers posted there; Rs. 372 million for the National Accountability Bureau to support digital transformation and implementation of A.I.-based systems; and Rs. 30 million for the Ministry of Inter Provincial Coordination to provide financial rewards to the Pakistan National Hockey Team for qualifying for the FIH Hockey World Cup after eight years.
The ECC also discussed a summary submitted by the Ministry of Defense regarding allocation of Rs. 5.985 billion for the PIA Holding Company Limited for settlement of liabilities of Pakistan International Airlines Corporation Limited. Out of the total amount, the Committee approved funding for reimbursement of medical and pension payments as well as for salary disbursements and asked for taking up the matter regarding payment to the National Insurance Company Limited with the relevant revenue authority for adjustment, in line with the recommendations of auditors.
The ECC further approved a summary submitted by the Commerce Division for amendments to the Import Policy Order, 2022 in line with Pakistan’s commitments under International Labor Organization conventions to introduce a prohibitory clause on import of goods produced through forced labor. In another summary submitted by the Commerce Division, the ECC approved amendments to the Import-Cum-Export Scheme of IPO, 2022 and Export Facilitation Scheme, 2021 to allow temporary import of used vehicles and auto parts for repair, refurbishment, and subsequent re-export under a pilot project, with directions for review after one year.
Additionally, the ECC considered a summary submitted by the National Food Security and Research Division seeking approval of recommendations regarding export of donkey meat and hides from Gwadar Donkey Slaughter House, and approved a proposal for disposal of existing inventory as per the applicable regulations and export protocols. The ECC further considered a summary submitted by the Power Division regarding the Public Service Obligation Agreement with Ex-WAPDA Distribution Companies and asked for referring the matter to the Cabinet Committee on State-Owned Enterprises, as it is the suitable forum.