ISLAMABAD: The Economic Coordination Committee (ECC) has approved a Rs50 billion supplementary budget to strengthen Pakistan’s defence infrastructure, focusing on border security, naval base upgrades, and protection of the China-Pakistan Economic Corridor (CPEC). Finance Minister Muhammad Aurangzeb chaired the meeting, which also reviewed proposals on food management and petroleum sector reforms.

Out of the allocation, Rs39 billion will go to the military and Rs11 billion to the navy for projects outside the regular defence budget of Rs2.556 trillion. The ECC sanctioned Rs19 billion for the Special Security Division South, marking a 19 percent rise from last year, and Rs8 billion for the Special Security Division North, keeping allocations steady. It also approved Rs9.9 billion for internal security duty allowances and Rs2 billion for border fencing along Afghanistan and Iran to curb smuggling and illegal crossings.

The Pakistan Navy will receive Rs11 billion to enhance two naval bases, while the Pakistan Air Force has been granted Rs150 million for internal security duties. The ECC allocated Rs841.6 million for federal civil armed forces to support border control and law enforcement, along with Rs100 million for defence equipment repair and maintenance.

In a major restructuring step, the ECC approved the creation of the Wheat Stocks Management Company (WSMC) with an authorized capital of Rs350 billion. The new entity will replace the Pakistan Agriculture Storage and Services Corporation (Passco), which was shut down without a clear plan for its assets and liabilities. WSMC will raise commercial loans to settle Passco’s liabilities, estimated at Rs528 billion, with government projections suggesting that over Rs400 billion can be cleared through receivables and wheat stock sales.

The Finance Ministry will provide sovereign guarantees for WSMC’s loans, while annual budget allocations will cover principal and interest payments. A grade-20 officer from the National Food Security Ministry has been appointed as the company’s first CEO. The ECC also exempted WSMC from the State-Owned Enterprises Act of 2023, citing its limited mandate to manage liabilities rather than operate commercially.

This decision highlights the government’s twin priorities of reinforcing national security and restructuring food storage systems to improve financial efficiency and accountability.