Petroleum imports via bonded storage approved; ECC okays $153.855m PIAL-NBP guarantee

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved a USD 153.855 million government guarantee based on a term sheet agreed between PIAIL and NBP, allowed petroleum imports through customs-bonded storage facilities, and approved a new Sale and Purchase Agreement between PSO and Oman’s OQ Trading to strengthen the country’s energy security and petroleum supply chain.

The committee meeting was chaired by Minister for Finance and Revenue, Muhammad Aurangzeb, and took up a nine-item agenda related to different ministries and divisions.

The ECC considered and approved a summary regarding the provision of PASSCO’s Wheat Stocks to all recipient agencies at the rate of 85 percent local and 15 percent imported wheat.

READ MORE: Customs-bonded oil storage: ECC may revise import policy

The Summary was submitted by the National Food Security and Research Division. The proposal was based on the recommendation of the Board of Directors of PASSCO to ensure the timely disposal of imported wheat stock.

The ECC also considered and approved a Summary with the proposal of the Petroleum Division to allow the import of petroleum products on foreign suppliers’ account through Customs bonded storage facilities.

The proposal focused on the development and strengthening of the key pillars of the country’s energy security architecture in the oil and gas sector, which includes indigenization, development of strategic petroleum reserves and promotion of Customs bonded storage facilities to ensure a resilient and sustainable petroleum supply chain.

The ECC also considered and approved the summary submitted by the Petroleum Division with the proposal to approve a Sale and Purchase Agreement (SPA) in pursuance of the Inter-Governmental Agreement (IGA) earlier signed between the Government of Pakistan and the Sultanate of Oman. The SPA aims to promote and develop cooperation between OQ Trading and PSO in the field of energy.

The ECC further considered the Summary submitted by the Defence Division and approved the constitution of a committee to negotiate a settlement enabling redevelopment of Roosevelt Hotel in coordination with the union.

The ECC also considered a Summary submitted by the Defence Division and approved GoP Guarantee of USD 153.855 million (equivalent in PKR) based on the term sheet agreed between PIAIL and NBP.

The ECC also considered and approved the proposal of Technical Supplementary Grant of Rs. 7797.160 million submitted by the Water Resources Division for Greater Karachi Bulk Water Supply Scheme (K-IV Project). The amount was remitted by the Government of Sindh from the Provincial Consolidated Fund through the Federal Consolidated Fund.

The ECC also considered and approved the proposal of Technical Supplementary Grant of Rs. 567.032 million, submitted by Interior and Narcotics Control Division, out of savings of Finance Division to Frontier Corps Balochistan (South) for smooth security of Reko Diq project activities.

Copyright Business Recorder, 2026