This approval marks the second supplementary grant since the June budget, adding to a prior Rs60 billion allocation for Operation Azm-e-Istehkam. These new funds are in addition to the already allocated Rs2.127 trillion defense budget.
Economic Coordination Committee (ECC)
The Economic Coordination Committee (ECC), led by Finance Minister Muhammad Aurangzeb, decided to allocate Rs35.4 billion to the army and Rs9.5 billion to the navy for various missions.
The decision follows the ECC’s approval of a technical supplementary grant based on a proposal from the Defence Division concerning defense projects for the current fiscal year, according to the Ministry of Finance.
Media reports indicate that the ECC has designated Rs16 billion for the Special Security Division South, which safeguards the China-Pakistan Economic Corridor (CPEC) in southern regions, and Rs8 billion for the division overseeing the northern regions of CPEC.
This development comes in response to rising terror threats, prompting China to urge Pakistan to form an anti-terrorism cooperation agreement to enhance security for Chinese nationals and CPEC workers, particularly for the upcoming CPEC phase-II.
So far, 38 projects worth $25.2 billion have been completed under CPEC’s first phase, including 17 energy projects totaling $18 billion. However, security concerns have delayed approximately 26 projects valued at $26.8 billion in CPEC phase-II.
China has also proposed incorporating a vehicle-mounted mobile security equipment project and a ballistic protective vehicle initiative into the next phase of CPEC to further bolster security.
Additionally, the ECC approved Rs9.9 billion for the army’s internal security duty allowance and Rs1.5 billion for border fencing.
The navy received Rs9.5 billion for upgrades at the Jinnah Naval Base in Ormara and Rs1.2 billion for the Naval Air Station in Turbat. Meanwhile, the Pakistan Air Force was granted Rs150 million for its internal security duty allowance.
