The Economic Coordination Committee (ECC) of the federal cabinet on Tuesday approved amendments to the vehicle import procedure, discontinuing the Personal Baggage Scheme.
In its meeting, chaired by Finance Minister Muhammad Aurangzeb, the ECC retained the Transfer of Residence and Gift Schemes, as proposed by the Commerce Ministry in consultation with other ministries.
The revised framework calls for commercial-import safety and environmental standards to apply to the retained schemes. It also extends the allowed import period from two to three years, and bars any transfer of imported vehicles for one year. Further, it increases the minimum stay abroad requirement to three years with at least 850 cumulative days, and retains the condition that vehicles under the Transfer of Residence Scheme must be exported from the same country where the sender resides.
The revisions follow widespread misuse of the Personal Baggage, Transfer of Residence and Gift Schemes under the Import Policy Order, 2022. Initially intended for genuine overseas Pakistanis, it has been used as a means of tax evasion. The previous scheme was also facing pressure from local assemblers facing quality competition and had raised foreign exchange concerns.
Fuel margins
During its meeting, the ECC approved an additional Rs. 2.56/liter margin for petrol and diesel to boost the profitability of oil marketing companies and their dealers. The margin has been divided into Rs. 1.22/liter for OMCs and Rs. 1.34/liter for petroleum dealers. It would be implemented in two equal instalments, with the first increase—Rs. 0.61/liter for OMCs and Rs. 0.67/liter for dealers—taking effect from Dec. 15. The second increase would come into force on June 1, 2026, subject to digitization of sales and stock networks and their live connectivity with government bodies, including the Oil and Gas Regulatory Authority, Federal Board of Revenue and Petroleum Division.
An official statement from the meeting states adjustments were made in line with the National Consumer Price Index for 2023–24 and 2024–25, with increases capped between 5% and 10%.
The ECC also approved restrictions on chloroform imports due to its toxic and carcinogenic nature, deciding only pharmaceutical companies can import it with a no-objection certificate from the Drug Regulatory Authority of Pakistan (DRAP). During the meeting, DRAP opposed an outright ban on the chemical, noting it is essential as a laboratory reagent and for quality control testing.
Additionally, the ECC rejected a concessionary gas/RLNG tariff claim by M/s Ghani Glass, saying that such subsidies were no longer permissible and that broader export-support initiatives were already underway.
The meeting approved a Rs. 1.28 billion supplementary grant for the Pakistan Digital Authority to support digital transformation and technological innovation across government departments, and another Rs. 5bn supplementary grant for the Ministry of Housing and Works. It also approved, in principle, the release of budgetary allocations for PIA Holding Company Limited to meet pension and medical expenses of PIACL employees.
The ECC reviewed the Circular Debt Management Plan for FY26, presented by the Power Division, to ensure financial sustainability and efficiency in the power sector. It 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 institute a follow-up mechanism with distribution companies to ensure delivery of targets committed to the government.
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. Once its mandate is fulfilled, the company would be dissolved.