Pakistan’s ECC Approves Major Vehicle Import Reforms and Revises Petroleum Margins to Boost Sector Efficiency

The Economic Coordination Committee (ECC), led by Finance Minister Muhammad Aurangzeb, approved significant revisions to Pakistan’s vehicle import procedures during its recent meeting at the Finance Division. The committee also reviewed the Circular Debt Management Plan for the fiscal year 2025–26, presented by the Power Division, aimed at ensuring financial sustainability and operational efficiency within the power sector.

The ECC directed the Power Division, in coordination with the Finance Division, to develop a medium-term strategy to gradually reduce fiscal support for the sector. It also emphasized the need for a follow-up mechanism with distribution companies (DISCOs) to ensure that the targets pledged to the government are met.

Based on a summary from the Ministry of Commerce, the ECC approved amendments to vehicle import regulations, restricting imports to the Transfer of Residence and Gift Schemes only. Under the revised framework, imported vehicles must comply with commercial safety and environmental standards, the allowable import period between uses has been extended from two to three years, and vehicles will remain non-transferable for one year after import.

Additionally, the ECC approved adjustments to the margins of oil marketing companies (OMCs) and petroleum dealers on motor spirit (MS) and high-speed diesel (HSD). The margins will be revised in line with the National Consumer Price Index (CPI) for 2023–24 and 2024–25, with increases capped between 5 and 10 percent. Half of the margin increase will be implemented immediately, while the remaining half will depend on progress in digitization, with the Petroleum Division required to report back by June 1, 2026.

These decisions are part of broader government efforts to improve financial management in the power sector, streamline vehicle import policies, and ensure fair pricing mechanisms in the petroleum industry while promoting transparency and regulatory compliance.