Govt approves Rs50b defence package for national security

Amid heightened security threats and an uptick in terrorist attacks, the government approved Rs50.9 billion ($180 million) for a series of defence initiatives aimed at strengthening national security.

The allocations were cleared during a meeting of the Economic Coordination Committee (ECC) held at the Finance Division, chaired by Finance Minister Muhammad Aurangzeb. The committee reviewed multiple summaries concerning defence, internal security, food security and reforms in the petroleum sector.

According to the ministry, the ECC approved a Technical Supplementary Grant (TSG) of Rs100.3 million for the Ministry of Interior and Narcotics Control for the repair and maintenance of defence equipment used by the Federal Civil Armed Forces. Officials said the funds will ensure the operational readiness of equipment deployed in law enforcement and security operations.

The committee also approved an additional Rs841.56 million as TSG for the Federal Civil Armed Forces to support border control operations, internal security duties and the maintenance of law and order. The funding is expected to bolster border infrastructure and strengthen nationwide security measures. The ECC cleared a separate summary from the Defence Division, approving Rs50 billion as TSG for a range of approved projects of the Defence Services.

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The committee further reviewed a summary from the Ministry of National Food Security & Research regarding the winding up of the Pakistan Agricultural Storage and Services Corporation. It approved the establishment of a Special Purpose Vehicle (SPV) with an initial paid-up capital of Rs1 million to manage the structured closure of the organisation. The SPV will oversee procurement reforms, supply-chain restructuring and efficiency improvements in the agricultural sector.

Separately, the Petroleum Division presented proposals on extending licence periods and assigning working interests for offshore oil and gas exploration blocks. The ECC approved the measures, which aim to incentivise greater participation of foreign companies in Pakistan’s petroleum exploration sector by offering extended timelines and more flexible investment arrangements.

The meeting was attended by Petroleum Minister Ali Pervaiz Malik, Planning Minister Ahsan Iqbal, Special Assistant to the Prime Minister Haroon Akhtar Khan, as well as federal secretaries and senior officials from relevant ministries, divisions and regulators. The decisions come as the government moves to reinforce security preparedness and encourage foreign investment in critical sectors during a period of heightened national concern.