Islamabad: The Economic Coordination Committee (ECC) of the Cabinet on Tuesday reviewed the Circular Debt Management Plan for FY 2025-26 and approved a series of key policy measures relating to power sector reforms, vehicle imports, petroleum pricing, digital transformation, food security, and public sector liabilities.

The meeting was held at the Finance Division under the chairmanship of Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, and 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.

The ECC examined the Circular Debt Management Plan presented by the Power Division and directed it, in coordination with the Finance Division, to formulate a medium-term strategy for the gradual reduction of fiscal support to the power sector. It also ordered the Power Division to establish a follow-up mechanism with DISCOs to ensure achievement of the government-committed performance targets.

On a summary submitted by the Ministry of Commerce, the ECC approved amendments to the vehicle import procedure by retaining only the Transfer of Residence and Gift Schemes. Under the revised framework, commercial-import safety and environmental standards will apply to these schemes, the intervening import period has been extended from two to three years, and imported vehicles will remain non-transferable for one year.

The Committee also approved revisions in the profit margins of Oil Marketing Companies (OMCs) and petroleum dealers on MS and HSD in line with the National Consumer Price Index for 2023-24 and 2024-25. The increase has been capped between 5 to 10 percent. It was decided that 50 percent of the increase will be paid immediately, while the remaining 50 percent will be linked to digitization progress, with the Petroleum Division directed to report back by June 1, 2026.

The ECC further approved restrictions on chloroform imports due to its toxic and carcinogenic nature. It was decided that Trichloromethane (chloroform) may only be imported by pharmaceutical companies and strictly against a No Objection Certificate issued by DRAP.

The Committee rejected a summary concerning the claim of M/s Ghani Glass for a concessionary gas/RLNG tariff, declaring the request untenable as such subsidies are no longer permissible and that broader export support initiatives are already under implementation.

On another summary, the ECC approved a Technical Supplementary Grant (TSG) of Rs. 1.28 billion for the Pakistan Digital Authority (PDA) to accelerate digital transformation and innovation across government departments. It also approved the release of development funds for the Cabinet Division for FY 2025-26 as a TSG on the proposal of the Interior and Narcotics Control Division.

Additionally, the ECC approved the allocation of Rs. 5 billion to the Housing and Works Division through a Technical Supplementary Grant for the current fiscal year.

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. The Committee authorized the company's incorporation, financial and administrative arrangements, regulatory exemptions, and the appointment of initial subscribers and interim management. The company will be dissolved after the completion of its mandate.

The Committee also accorded in-principle approval for the release of budgetary funds to PIA Holding Company Limited (PIAHCL) to meet pension and medical expenses of Pakistan International Airlines Corporation Limited (PIACL) employees.