ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has directed provinces to curb cartelization, and prevent undue profiteering in order to protect consumers from unfair price hikes.
The ECC met under the chairmanship of Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb. Besides the regular agenda, the meeting focused on reviewing the trends in inflation and the prices of essential commodities, as presented by the Economic Advisor’s Wing of the Finance Division.
At the outset, the ECC conducted a monthly review of inflation trends as per its earlier decision. The Cabinet body was informed that inflation during the first half of FY2025 (July-December) had decreased significantly to 7.2%, compared to 28.8% during the same period last year.
Additionally, inflation for the month of December 2025 was recorded at 4.1%, a sharp reduction from 29.7% in December 2024. This marked the lowest inflation rate in 80 months, largely owing to exchange rate stability, prudent fiscal management, and improved supply arrangements of essential items across the country.
The ECC expressed satisfaction with the ongoing decline in the Sensitive Price Index (SPI) over the past few weeks. However, the chair emphasized that the reduction in core inflation, average inflation, and the downward price trends should translate into tangible relief for the common man.
Despite positive trends, the Committee expressed concern over the rising prices of sugar, vegetables, and edible oil, particularly in light of declining prices in the international market. To address this, the ECC directed the Ministry of Industries and Production and the Ministry of National Food Security & Research to collaborate with the National Price Monitoring Committee (NPMC) and report back to the ECC within two weeks with measures to ensure the maintenance of strategic reserves of wheat, sugar, and pulses, as well as to improve the supply chains of essential items ahead of the holy month of Ramadan.
Furthermore, the ECC 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. The Chair reaffirmed the government’s resolve and commitment to ensuring the availability of essential commodities at affordable prices for the people of Pakistan.
Amongst the regular agenda, the ECC approved a summary submitted by the Revenue Division for introduction of necessary policy interventions in the Export Facilitation Scheme (EFS) 2021 with a view to plugging revenue leakages without disturbing the compliant exporters. The proposed changes in the EFS seek reduction in input utilization period, input authorization based on production capacity/input-output ratio, replacement of insurance guarantees with bank guarantees, vendor facilitation controls, drawal 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 & ammunition component and engaging Nespak as design consultant for Digital Enforcement Stations (DES) and check posts.
The ECC also considered and approved a proposal by the Ministry of Interior for release of a technical supplementary grant (TSG) of Rs. 494.56 million to Frontier Corps KP (North) for construction of barracks and check posts. Regarding another proposal by the Interior Division for release of a TSG of Rs 1.792 billion for smooth conduct of Reko Diq project activities as per MoU/agreement executed with the Reko-Diq Mining Company, the ECC directed the proposal be put up again in the next meeting with clear visibility of how the requisite grant was meant to be spent as regular funds were already allocated for the current expenditure.
Finally, a proposal from the Intelligence Bureau Division for provision of a TSG of Rs 500 million was also considered and approved.
