The Economic Coordination Committee (ECC) of the Cabinet on Tuesday approved amendments to the vehicle import procedure, retaining only the Transfer of Residence and Gift Schemes.
Under the revised framework, commercial-import safety and environmental standards will apply to these schemes, the intervening import period will be extended from two to three years, and imported vehicles will remain non-transferable for one year.
The ECC met under the chairmanship of the Federal Minister for Finance & Revenue, Senator Muhammad Aurangzeb and reviewed the Circular Debt Management Plan for FY 2025-26, presented by the Power Division, for ensuring financial sustainability and efficiency in the power sector.
The ECC called on the Power Division, in coordination with the Finance Division, to develop a medium-term plan for gradually reducing fiscal support. It also asked the Power Division to institute a follow-up mechanism with the DISCOs to ensure delivery of the targets committed to the Government.
The Committee also reviewed and approved a proposal to revise the margins of oil manufacturing companies and petroleum dealers on MS and HSD, adjusting them in line with the National CPI for 2023-24 and 2024-25, with increases capped between 5% and 10%.
It also decided that half of the increase in the margins will be paid immediately, while the remaining half will be conditional on digitization progress, with the Petroleum Division to report back by June 1, 2026.
The ECC also approved a summary seeking restrictions on chloroform imports due to its toxic and carcinogenic nature, and decided that Trichloromethane (chloroform) would only be imported by pharmaceutical companies and only with a DRAP-issued NOC.
The ECC also considered a summary regarding the claim of M/s Ghani Glass for a concessionary gas/RLNG tariff and decided the request was untenable as such subsidies were no longer permissible and that wider export-support initiatives were already in progress.
On another summary, the ECC approved a Technical Supplementary Grant (TSG) of PKR 1.28 billion for the Pakistan Digital Authority (PDA) to facilitate digital transformation and technological innovation across government departments.
The committee further approved the release of funds as technical supplementary grant relating to the development expenditure of the Cabinet Division for FY 2025-26, as proposed by the Interior and Narcotics Control Division.
The ECC also approved the allocation of Rs. 5 billion to the Housing and Works Division through a Technical Supplementary Grant for the current fiscal year.
On a summary by the Ministry of National Food Security and Research, the ECC approved creating a special-purpose company to wind up PASSCO and settle its remaining liabilities. It authorized the company’s incorporation, administrative and financial arrangements, and necessary regulatory exemptions, along with appointing initial subscribers and interim management. The company will be dissolved once its mandate is fulfilled.
Additionally, the committee accorded in-principle approval for the release of budgetary allocation for PIA Holding Company Ltd. (PIAHCL) to meet pension and medical related expenses of the PIACL employees.
The meeting was attended by Minister for Petroleum Ali Pervaiz Malik, Minister for Power Sardar Awais Ahmad Khan Leghari, Minister for Investment Board Qaiser Ahmed Sheikh, along with federal secretaries and senior officials from the concerned ministries, divisions and regulatory bodies.