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Aftab Maken
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet, chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, on Monday approved a series of major decisions aimed at improving fiscal discipline, tightening import controls and supporting digital transformation.
Power sector reforms.
The ECC reviewed and endorsed the Circular Debt Management Plan for FY 2025–26 presented by the Power Division. The committee directed the Power Division, in collaboration with the Finance Division, to prepare a medium-term strategy for gradually phasing out budgetary support to the sector. It also ordered the establishment of a robust monitoring mechanism with distribution companies (DISCOs) to ensure achievement of agreed performance targets.
Stricter vehicle import policy
In a significant policy shift, the ECC restricted personal vehicle imports to only two schemes — Transfer of Residence and Gift Scheme. Commercial-grade safety and environmental standards will now apply to vehicles imported under both schemes. The minimum gap between two imports has been increased from two to three years, while imported vehicles will remain non-transferable for one year after customs clearance.
Increase in petroleum margins
The committee approved an upward revision in the margins of Oil Marketing Companies (OMCs) and dealers on Motor Spirit (MS) and High-Speed Diesel (HSD), aligned with the national CPI of 2023–24 and 2024–25. The increase has been capped between 5–10%. Half of the enhanced margin will be released immediately, while the remaining half will be linked to progress on digitisation of the sector, with the Petroleum Division required to submit a report by 1 June 2026.
Ban on commercial chloroform imports
Citing its highly toxic and carcinogenic properties, the ECC imposed strict restrictions on chloroform (Trichloromethane) imports. From now on, only pharmaceutical manufacturers will be allowed to import the chemical, and that too only after obtaining a No-Objection Certificate (NOC) from the Drug Regulatory Authority of Pakistan (DRAP).
Other key decisions
- Rejected M/s Ghani Glass Ltd’s request for continuation of concessionary gas/RLNG tariff, stating that sector-specific subsidies are no longer permissible.
- Approved a Technical Supplementary Grant of Rs 1.28 billion for the Pakistan Digital Authority to accelerate digital transformation across government departments.
- Allocated Rs 5 billion through TSG to the Ministry of Housing and Works for ongoing development projects.
- Approved creation of a special-purpose company to wind up Pakistan Agricultural Storage and Services Corporation (PASSCO) and settle its outstanding liabilities. The company will be dissolved upon completion of its mandate.
- Granted in-principle approval for budgetary allocation to PIA Holding Company Ltd to cover pension and medical expenses of retired and serving employees of the erstwhile PIACL.
The meeting was attended by Federal Minister for Petroleum Ali Pervaiz Malik, Federal Minister for Power Sardar Awais Ahmad Khan Leghari, Minister for Privatisation & Investment Board Qaiser Ahmed Sheikh, federal secretaries and senior officials of relevant ministries and regulatory bodies.
