ECC tightens Overseas Pakistanis’used vehicles import schemes, revises OMCs, dealers margin

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has tightened the three-year used-vehicle import schemes for overseas Pakistanis and revised the margins for OMCs and petroleum dealers upward, subject to certain conditions.
Presided over by Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb, 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, the intervening import period 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%. Half of the increase will be paid immediately, while the remaining half will be conditional on progress in digitization, with the Petroleum Division required to report back by June 1, 2026.
The ECC reviewed the Circular Debt Management Plan for FY 2025–26, presented by the Power Division, aimed at ensuring financial sustainability and efficiency in the power sector. The Committee directed 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 establish a follow-up mechanism with DISCOs to ensure delivery of the targets committed to the Government.
The ECC approved a summary seeking restrictions on chloroform imports due to its toxic and carcinogenic nature, deciding that trichloromethane (chloroform) may only be imported by pharmaceutical companies with a DRAP-issued NOC.
Regarding a claim by M/s Ghani Glass for a concessionary gas/RLNG tariff, the ECC deemed the request untenable, stating that such subsidies are no longer permissible and that broader export-support initiatives are already underway.
The Committee also approved a Technical Supplementary Grant (TSG) of PKR 1.28 billion for the Pakistan Digital Authority (PDA) to facilitate digital transformation and technological innovation across government departments.
Additionally, the ECC approved the release of technical supplementary funds for the development expenditure of the Cabinet Division for FY 2025–26, as proposed by the Interior and Narcotics Control Division, and sanctioned Rs 5 billion for the Housing and Works Division through a Technical Supplementary Grant for the current fiscal year.
On a summary from 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. The Committee authorized the company’s incorporation, administrative and financial arrangements, necessary regulatory exemptions, and the appointment of initial subscribers and interim management. The company will be dissolved once its mandate is fulfilled.
The Committee also accorded in-principle approval for the release of budgetary allocation to PIA Holding Company Ltd. (PIAHCL) to meet pension and medical-related expenses of PIACL employees.
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.