- Petrol diesel rates likely to rise up to Rs 2.56 per litre: sources.
- Committee approves modifications to the vehicle import procedure.
- The ECC approves a summary that seeks to limit chloroform imports.
The Economic Coordination Committee (ECC) of the Cabinet on Tuesday approved a proposal to review the profit margins of oil marketing companies (OMCs) and oil distributors on high-speed petrol and 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 2023-24 and 2024-25, with increases limited between 5% and 10%.
It also decided that half of the margin increase will be paid immediately, while the remaining half will be conditional on the progress of digitalization, with the Petroleum Division reporting by June 1, 2026.
Sources said Geographic news that the decision would raise the prices of petrol and diesel up to Rs 2.56 per litre. They added that an increase of Rs 1.28 per liter in petrol and diesel prices will be implemented immediately.
It was learned that increase of Rs 1.22 per liter in OMC margin on petrol had been approved, while the commission of petrol dealers had been increased by Rs 1.34 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, sources added.
New scheme for the import of vehicles
The commission approved modifications to the vehicle import procedure, maintaining only the residence transfer and donation regimes.
Under the revised framework, commercial import safety and environmental standards will apply to these schemes, the interim import period will be extended from two to three years, and imported vehicles will remain non-transferable for one year.
Chloroform import restrictions
The federal cabinet ECC 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 an NOC issued by the DRAP.
It also considered a summary on M/s Ghani Glass’s claim for a concessional gas/RLNG tariff and decided that the request was unsustainable as such subsidies were no longer permissible and broader export support initiatives were already underway.
It also reviewed the Debt Management Circular Plan for fiscal years 2025-26, presented by the Energy Division, to ensure financial sustainability and efficiency in the power sector.
The ECC asked the Energy Division, in coordination with the Finance Division, to develop a medium-term plan to gradually reduce fiscal support.
He also requested the Energy Division to institute a monitoring mechanism with the distribution companies (Discos) to ensure compliance with the goals committed to the Government.
In another brief, the committee approved a supplementary technical grant of Rs 1.28 billion for Pakistan Digital Authority (PDA) to facilitate digital transformation and technological innovation across all government departments.
The committee further approved the release of funds as a supplemental technical grant related to Cabinet Division development expenditures for FY26, 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 supplementary technical grant for the current fiscal year.
According to a summary by 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 obligations.
It authorized the incorporation of the company, the administrative and financial arrangements and the necessary regulatory exemptions, in addition to the appointment of initial subscribers and interim management.
The company will be dissolved once its mandate has been fulfilled.
Further, the committee approved in principle the release of budget allocation to PIA Holding Company Ltd (PIAHCL) to cover medical and pension 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 along with federal secretaries and senior officials of concerned ministries, divisions and regulatory bodies.
— With additional contributions from the APP.
