The Economic Coordination Committee (ECC) of the federal cabinet on Monday emphasized the government’s commitment to ensuring the availability of essential commodities at affordable rates for the people of Pakistan.
Chaired by Finance Minister Muhammad Aurangzeb, the meeting reviewed prevailing trends in inflation and the prices of essential commodities. It was informed inflation during the first half of the ongoing fiscal year had decreased significantly to 7.2% against 28.8% during the same period last year.
Additionally, it noted that inflation in December 2025 stood at 4.1%, the lowest inflation rate in 80 months and a sharp reduction from 29.7% in December 2024. The ECC was informed declining inflation was due to exchange rate stability, prudent fiscal management, and improved supply arrangements of essential items nationwide.
Expressing satisfaction about the ongoing decline in the Sensitive Price Index (SPI), Aurangzeb emphasized that the reduction in core inflation, average inflation, and the downward price trends should translate into tangible relief for the common man. The ECC noted that despite these positive trends, prices of sugar, vegetables, and edible oil continued to rise. To address this, the ECC directed the Ministry of Industries and Production and the Ministry of National Food Security and Research to collaborate with the National Price Monitoring Committee and devise within two weeks measures to ensure the maintenance of strategic reserves of wheat, sugar, and pulses. Additionally, it directed the improvement of supply chains of essential items ahead of Ramzan.
The ECC also called upon Provincial Price Control Committees to enforce strict compliance with the price control mechanism, curb cartelization, and prevent undue profiteering in order to protect consumers from unfair price hikes.
Regular agenda
The ECC also took up its regular agenda, approving a summary submitted by the Revenue Division for introduction of necessary policy interventions in the Export Facilitation Scheme 2021 with a view to plugging revenue leakages without disturbing compliant exporters. The proposed changes seek a reduction in input utilization period, input authorization based on production capacity/input-output ratio, replacement of insurance guarantees with bank guarantees, vendor facilitation controls, withdrawal of samples to ensure the utilization of imported input in the exported goods, and withdrawal of EFS facility from importers of iron and steel scrap.
The ECC also approved another proposal by the Revenue Division for release of a technical supplementary grant of Rs. 2.79 billion for procurement of arms and ammunition component and engaging Nespak as design consultant for Digital Enforcement Stations and checkposts.
The ECC further considered and approved a proposal by the Ministry of Interior for release of a technical supplementary grant of Rs. 494.56 million to Frontier Corps KP (North) for construction of barracks and checkposts. Another approval for release of a supplementary grant of Rs. 1.792 billion for smooth conduct of Reko Diq project activities was deferred until the next meeting.