ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet approved major policy changes affecting vehicle imports, fuel pricing, and the power sector.
The ECC, chaired by Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb, approved the abolition of the Personal Baggage Scheme for importing vehicles.
Only the Transfer of Residence and Gift Schemes will now remain, with stricter rules. Imported vehicles must meet safety and environmental standards, stay abroad for at least three years, and remain non-transferable for one year. Other amendments include changes in import eligibility under these schemes and updates to the Import Policy Order, 2022.
The committee also reviewed the Circular Debt Management Plan for FY 2025–26. It directed the Power Division, in coordination with the Finance Division, to gradually reduce fiscal support to the power sector and establish a monitoring mechanism with DISCOs to ensure targets are met.
ALSO READ
Islamabad’s CDA receives new water rescue gear from China
In addition, the ECC approved restrictions on chloroform imports. Only pharmaceutical companies with an NOC from DRAP will be allowed to import the chemical due to its toxic nature. A request by M/s Ghani Glass for a subsidized gas/RLNG tariff was rejected.
On development and digital initiatives, the ECC approved a Technical Supplementary Grant of Rs1.28 billion for the Pakistan Digital Authority to support digital transformation.
It also approved funds for the Cabinet Division, Housing and Works Division (Rs5 billion), and a special-purpose company to wind up PASSCO. Budgetary support for PIA Holding Company Ltd. was also granted to cover pension and medical expenses of PIACL employees.
Regarding fuel pricing, the ECC allowed a partial increase in margins for oil marketing companies and dealers. OMCs will get an extra Re0.61 per litre and dealers Re0.67 per litre.
The remaining increase will depend on progress in digitizing petroleum movement from refineries and ports to retail outlets, with a report due by June 1, 2026.
Govt announces plan to introduce AI-powered immigration system next year
