Rs45b approved for protecting Chinese interests

ECC gives nod to Defence Division's proposal for technical supplementary grant

ISLAMABAD:

The government on Thursday approved an additional Rs45 billion budget for the armed forces mainly to strengthen their capacity to protect Chinese commercial interests in Pakistan and manage the fencing along international borders.

Out of the Rs45 billion, an amount of Rs35.4 billion will be given to the military and Rs9.5 billion to the navy for various purposes, according to a decision taken by the Economic Coordination Committee (ECC) of the cabinet. Finance Minister Muhammad Aurangzeb chaired the ECC meeting.

The ECC also considered and approved a proposal submitted by the Defence Division for a technical supplementary grant of Rs45 billion for the already approved projects of defence services during the current fiscal year, according to a statement issued by the Ministry of Finance.

It is the second major supplementary grant approved for the armed forces after the approval of budget in June. Earlier, the ECC gave Rs60 billion for Operation Azm-e-Istehkam. These supplementary grants are over and above the Rs2.127 trillion defence budget.

The ECC approved Rs16 billion for the Special Security Division South, which was responsible for protecting the China-Pakistan Economic Corridor (CPEC) in southern regions.

Another Rs8 billion was given for the military's Special Security Division North that was responsible for protecting CPEC in the northern parts.

Due to the increasing number of terror attacks, China has demanded the signing of an agreement on anti-terrorism cooperation to address its security concerns.

China has also proposed the establishment of a joint company to ensure the security of its citizens already working in Pakistan or will be engaged during the CPEC phase-II.

Under phase-I, both sides have completed 38 projects worth $25.2 billion. Of these, 17 projects valuing at $18 billion were completed in the energy sector.

About 26 projects worth $26.8 billion are in the pipeline and many of those have been included in CPEC phase-II. But the security concerns have slowed down work on these projects.

China has also proposed that a vehicle-mounted mobile securing equipment project should be included in phase-II besides undertaking a project on ballistic protective vehicles.

The ECC approved Rs9.9 billion for the military in lieu of its internal security duty allowance. An amount of Rs1.5 billion was approved for managing the fencing at international borders.

The ECC approved Rs9.5 billion for the navy for Jannah Naval Base Ormara and Rs1.2 billion for the Naval Air Station in Turbat. Pakistan Air Force will get Rs150 million for the internal security duty allowance.

The ECC considered and approved a proposal for an increase in the special allowance equal to 20 daily allowances for the employees of Anti-Narcotics Force (ANF), according to the Ministry of Finance. It added that the allowance was increased to bring it on a par with other federal law enforcement agencies (LEAs).

The meeting was told that the salaries of ANF employees were considerably low as compared to the employees of other LEAs despite undertaking similar work and encountering similar dangers and hazards peculiar to their job of drug prevention and border patrol.

The impact of the revision is to the tune of Rs264.7 million per annum, according to the finance ministry.

The ECC discussed a summary of the Ministry of National Health Services, Regulations and Coordination regarding the short supply of Anti-Rabies Vaccine (ARV) at the Federal General Hospital Chak Shahzad Islamabad.

The meeting was told that the vaccine used at the Federal General Hospital Chak Shahzad was manufactured by the National Institute of Health Islamabad and it was currently priced at Rs891.7 whereas the same drug was sold for Rs2,126.40 for WHO-approved ARV and Rs1,266.14 for non-WHO approved ARV in the market.

After due consideration, the ECC approved the proposal to increase the maximum retail price of ARV manufactured by the National Institute of Health, Islamabad, from Rs891.65 to Rs1,980 per vial of 0.5ml/ dose to cover the landed cost of imported material and ensure its sufficient production and supply to the public sector hospitals.

The ECC approved a proposal submitted by the Ministry of Climate Change and Environmental Coordination for a Rs150 million supplementary grant to meet the requirements of COP29 to be held in Baku, Azerbaijan from November 11 to 22.

The meeting was told that Pakistan, being highly vulnerable to climate change impacts, was actively engaged in the United Nations Framework Convention on Climate Change and COP29 would afford Pakistan with an opportunity to showcase its domestic climate actions, such as renewable energy projects, afforestation initiatives, and disaster risk reduction measures by setting up a pavilion to host different side events to highlight the achievements.