Amendments approved for cars under baggage rules: ECC revises OMCs’ margins to align with CPI
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved amendments to the procedure for import of vehicles under the personal baggage, transfer of residence, and gift schemes. It also revised the margins for oil marketing companies (OMCs) on petrol and diesel, adjusting in line with the National Consumer Price Index (CPI) for 2023–24 and 2024–25, with a hike capped at 5-10 percent.
The ECC met here on Tuesday with Federal Minister for Finance and Revenue, Muhammad Aurangzeb, in the chair.
On a summary by the Ministry of Commerce, the ECC 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 allowable interval between imports will be extended from two to three years, and imported vehicles will remain non-transferable for one year.
The Committee also reviewed and approved a proposal to revise the margins of OMCs 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 margins will be paid immediately, while the remaining half will be contingent on progress in digitisation, with the Petroleum Division directed to report back by June 1, 2026.
The ECC reviewed the Circular Debt Management Plan for fiscal year 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 targets committed to the government.
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 a claim by M/s Ghani Glass for a concessionary gas/RLNG tariff and decided that the request was untenable as such subsidies were no longer permissible and that the wider export-support initiatives were already in progress.
On another summary, the ECC approved a Technical Supplementary Grant (TSG) of Rs 1.28 billion for the Pakistan Digital Authority (PDA) to facilitate digital transformation and technological innovation across government departments.
The ECC also approved the release of funds as a technical supplementary grant relating to the development expenditure of the Cabinet Division for fiscal year 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 the creation of 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. According to the financial projections shared with the ECC, PIACL faces substantial debt-servicing obligations—including mark-up payments on both PKR-denominated and USD-denominated syndicated financing facilities.
The presentation showed that the mark-up on PKR syndicate financing is approximately Rs 254 billion, while the mark-up on USD syndicate financing is around USD 54 million. Additionally, a significant portion of the annual requirement includes retirement-related benefits, including pension and medical payments, which are to be paid to retired PIAC employees. A separate line item on the presentation indicated that payments to PIACL are estimated at Rs 11,432 million.
The meeting was attended by Federal Minister for Petroleum Ali Pervaiz Malik, Federal Minister for Power Sardar Awais Ahmad Khan Leghari, Federal Minister for Investment Board Qaiser Ahmed Sheikh, along with federal secretaries and senior officials from the concerned ministries, divisions and regulatory bodies.
Copyright Business Recorder, 2025