Pakistan’s Economic Coordination Committee of Cabinet has announced a significant tightening of vehicle import regulations for overseas Pakistanis while also approving several fiscal and digital transformation measures. Chaired by Finance Minister Senator Muhammad Aurangzeb, the ECC focused on curbing long-standing misuse of vehicle import schemes and strengthening financial oversight across multiple sectors. Under the revised framework, vehicles imported under the Transfer of Residence scheme must now be verified to originate from the same country where the overseas Pakistani resides, ensuring the measure eliminates third-country shipment abuse. Vehicles imported under the Gift scheme remain exempt from this restriction.
Eligibility criteria have also been strengthened, requiring overseas Pakistanis to have spent a minimum of three years abroad, totaling at least 850 days, before they can import a vehicle under the Transfer of Residence or Gift schemes. Officials stated this ensures that only genuine expatriates benefit from concessions and prevents exploitation by frequent travelers. Additionally, the ECC decided to discontinue the Personal Baggage scheme while retaining the Transfer of Residence and Gift schemes. Safety, environmental, and regulatory standards applied to commercial vehicle imports will now also govern these schemes. To further discourage misuse, the mandatory gap between successive imports has been extended from two to three years, and all imported vehicles will remain non-transferable for one year.
Beyond vehicle import regulations, the ECC reviewed the Circular Debt Management Plan for FY 2025–26, presented by the Power Division. The committee instructed the division, in coordination with Finance Division, to develop a medium-term strategy to gradually reduce fiscal support while establishing a monitoring mechanism with DISCOs to track target delivery. The ECC also approved revisions to petroleum margins for OMCs and dealers on MS and HSD in line with the National CPI for 2023–24 and 2024–25, capping increases between five and ten percent. Half of the increase will be disbursed immediately, with the remainder contingent on digitization progress, and the Petroleum Division will report back by June 1, 2026. Restrictions were also imposed on chloroform imports, allowing only pharmaceutical companies with a DRAP-issued NOC to import, reflecting the substance’s toxic and carcinogenic nature.
The committee approved several technical supplementary grants to support digital transformation and public sector operations. PDA received Rs 1.28 billion to facilitate technological innovation across government departments. Housing and Works Division was allocated Rs 5 billion for FY 2025–26, while the Cabinet Division secured release of development expenditure. The ECC also approved the creation of a special-purpose company to wind up PASSCO, settle liabilities, and manage remaining administrative and financial arrangements, with the company to be dissolved after fulfilling its mandate. In principle, budgetary allocation was also released for PIA Holding Company Ltd. to cover pension and medical expenses of PIACL employees.
The ECC decisions reflect a broader government focus on enhancing accountability, curbing misuse of benefits, supporting digital governance, and ensuring financial sustainability across key sectors. Officials emphasized that these measures aim to balance expatriate welfare, regulatory compliance, and effective resource management, while creating mechanisms to modernize and monitor both fiscal and operational frameworks.
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