ECC approves Rs75bn for PM’s fuel relief scheme

The Economic Coordination Committee (ECC) of the Cabinet on Monday approved Rs75 billion as a Technical Supplementary Grant (TSG) for the implementation of Prime Minister Shehbaz Sharif’s fuel relief scheme for lower-income consumers.

The ECC meeting, chaired by Finance Minister Muhammad Aurangzeb, approved the Petroleum Division’s proposal for targeted relief following the recent increase in petroleum prices.

Under the scheme, two- and three-wheelers will receive Rs500 per week, equivalent to five litres at a subsidised rate of Rs100 per litre, while cars up to 800cc will receive Rs1,000 for 10 days, based on 30 litres per month at Rs100 per litre.

The relief will be available only to non-commercial users and will be limited to one vehicle per user or owner.

The Ministry of Information Technology and Telecommunication will deploy and manage the Fuel Pass System (FPS) for digital administration and transparent disbursement of the relief.

The ECC also approved the implementation framework for restructuring the ownership and management control of Pakistan National Shipping Corporation (PNSC), as recommended by the implementation committee headed by the Minister for Privatisation.

It approved the draft upgrade agreement under the Pakistan Oil Refining Policy for Upgradation of Existing/Brownfield Refineries, 2023, as amended in August 2026. The agreement will provide a framework for implementing and monitoring refinery upgradation projects and associated incentives over a five-year completion period.

The committee also approved an interim mechanism for settling financial claims of oil marketing companies, including compensation for unadjusted input sales tax claims for July 2025 to June 2026 through the Inland Freight Equalization Margin.

The ECC deferred a proposal concerning standards and regulatory requirements for commercial imports of used vehicles and directed that recommendations of the committee reviewing the Engineering Development Board’s vehicle import inspection regime be obtained before resubmission.

It also approved the export of 200,000 metric tons of surplus sugar, with safeguards to maintain domestic price stability.

Separately, the ECC approved Rs3 billion through a Technical Supplementary Grant for purchasing 15 bullet-proof sedan vehicles for security arrangements during the Shanghai Cooperation Organisation (SCO) Council Summit, scheduled to be hosted by Pakistan in Islamabad in September 2027.