- Petrol diesel rates set to increase by up to Rs2.56 per litre: sources.
- The committee approves the amendments to the procedure for importing vehicles.
- ECC approves summary to limit chloroform imports.
The Economic Coordination Committee (ECC) of the Cabinet on Tuesday approved a proposal to revise profit margins of oil marketing companies (OMCs) and oil traders on petrol and high-speed diesel.
The ECC meeting was chaired by Finance Minister Senator Muhammad Aurangzeb.
The adjustments were made in line with the national Consumer Price Index (CPI) for 2023-2024 and 2024-2025, with increases capped between 5% and 10%.
It also decided that half of the increase in margins would be paid immediately, while the other half would be conditional on progress in digitalization, with the Petroleum Division to report by June 1, 2026.
Sources said PK Press Club News that the decision would hike the prices of petrol and diesel by up to Rs2.56 per litre. An increase of Rs1.28 per liter in prices of petrol and diesel will be passed on immediately, they added.
It has emerged that increase of Rs1.22 per liter in OMC margin on petrol has been approved, while dealer commission on petrol has been increased by Rs1.34 per litre.
For diesel, OMC margin has also been increased by Rs 1.22 per litre, and dealer commission by Rs 1.34 per litre, the sources added.
New regime for vehicle imports
The committee approved amendments to the vehicle import procedure, retaining only the transfer of residence and gift programs.
Under the revised framework, commercial import safety and environmental standards will apply to these programs, the interim import period will be extended from two to three years, and imported vehicles will remain non-transferable for one year.
Restrictions on chloroform imports
The ECC of the federal cabinet also approved a summary seeking restrictions on imports of chloroform due to its toxic and carcinogenic nature, and decided that trichloromethane (chloroform) would only be imported by pharmaceutical companies and only with a NOC issued by DRAP.
It also considered a summary regarding M/s Ghani Glass’s demand for preferential tariff on gas/RLNG and decided that the demand was untenable as such subsidies were no longer permitted and broader export support initiatives were already underway.
It also reviewed the circular debt management plan for the financial year 2025-2026, presented by the Power Division, aimed at ensuring the financial viability and efficiency of the power sector.
The ECC called on the Energy Division, in coordination with the Finance Division, to develop a medium-term plan to gradually reduce budget support.
He also asked the Electricity Division to institute a monitoring mechanism with the distribution companies (discos) to ensure the achievement of the targets committed to the government.
In another summary, the committee approved an additional technical grant of Rs 1.28 billion for the Pakistan Digital Authority (PDA) to facilitate digital transformation and technological innovation in government departments.
The committee further approved the release of funds as Supplemental Technical Grant for Development Expenditure of the Cabinet Division for FY26 as proposed by the Interior and Narcotics Control Division.
The ECC also approved the allocation of Rs5 billion to the Housing and Works Division through supplementary technical grant for the current financial year.
Based on a summary from the Ministry of National Food Security and Research, the ECC approved the creation of a special purpose company to liquidate Passco and settle its remaining debts.
It authorized the incorporation of the company, the administrative and financial arrangements, as well as the necessary regulatory exemptions, as well as the appointment of the first subscribers and interim management.
The company will be dissolved once its mandate has been completed.
Further, the committee accorded in-principle approval for the release of budgetary allocation to PIA Holding Company Ltd (PIAHCL) to cover pension and medical expenses of PIACL employees.
The meeting was attended by Minister of Petroleum Ali Pervaiz Malik, Minister of Energy Sardar Awais Ahmad Khan Leghari, Minister of Board of Investment Qaiser Ahmed Sheikh, as well as federal secretaries and senior officials of relevant ministries, divisions and regulatory bodies.
— With an additional contribution from the APP.
