IslamabadThe Economic Coordination Committee (ECC) was held in the Council of Ministers today under the leadership of the Federal Finance Minister, Senator Mohamed Orangazib, to address continuous inflationary trends and high commodity prices.
In addition to its usual agenda, ECC reviewed inflation trends and the pricing of the main commodities, as presented by the Economic Adviser’s Pavilion in the Finance Department. The committee was informed that inflation decreased significantly during the first half of the fiscal year 25, as it decreased to 7.2 percent from 28.8 percent during the same period last year. December 2025 saw inflation by 4.1 percent, a sharp decrease from 29.7 percent in December 2024 – as the lowest rate of inflation in 80 months. This improvement is attributed to factors such as the stability of the exchange rate, effective financial management, and supplements reinforcing the basic commodities.
While ECC expressed their satisfaction with the declining trend in the sensitive price index (SPI) in recent weeks, the committee confirmed that the cuts in basic inflation and total prices must lead to concrete benefits for the general public.
However, despite these positive trends, ECC has raised concerns about increasing the prices of sugar, vegetables and edible oil, especially given the decrease in the costs of these commodities in the international market. To address this situation, the committee directed the Ministry of Industries and Production, in cooperation with the Ministry of Security and National Research and the National Price Control Committee (NPMC), to derive a plan and submit a report within two weeks. The focus will be on ensuring the preservation of strategic reserves of basic commodities, including wheat, sugar and legumes, while improving supply chains before the holy month of Ramadan.
In addition, ECC has called for price control committees in provinces to impose a more striking commitment to the price monitoring mechanism, karteli fighting, and preventing unfair benefit. The committee affirmed the government’s commitment to ensure that the basic goods remain within the reach of all citizens.
In other matters, ECC agreed to a summary of the revenue department regarding policy changes in the export facilitation plan (EFS) 2021. The changes aim to connect the revenue leakage while maintaining support to the compatible exporters. The main amendments include reducing the period of input use, adjusting the input license based on the productive capacity, and replacing insurance guarantees with bank guarantees.
The committee also approved a supplementary grant of 2.79 billion rupees for weapons and ammunition purchases and NesPak’s participation as a design consultant for digital enforcement stations (Des) and verification of posts. Other approved proposals included a rupee grant. 494.56 million for Frontier Corps KP (North) for the construction of barracks and verification of posts, as well as a grant of 1.792 billion rupees for the Reko DIQ project, taking into account the clarification on the proposed expenses.
Moreover, ECC has reviewed and amended the mediation agreement on customs tariff claims by Karachi Electric (KE) and other state -owned entities, ensuring that definitions are not increased. The committee also agreed to the proposal of the Intelligence Office, as it issued a complementary grant with a rupee value. 500 million.
The meeting emphasized the proactive efforts of the government to manage inflation and maintain the availability of basic commodities at reasonable prices for the Pakistani public.
