ECC approves Rs75 billion for petrol relief scheme

Pakistan’s Economic Coordination Committee (ECC) has approved a Rs75 billion package for a targeted petrol relief scheme aimed at helping low-income consumers cope with rising fuel costs.

ISLAMABAD: Pakistan’s Economic Coordination Committee (ECC) has approved a Rs75 billion package for a targeted petrol relief scheme aimed at helping low-income consumers cope with rising fuel costs.

Under the scheme, owners of two- and three-wheelers will receive Rs500 in weekly relief, equivalent to five liters of petrol at a subsidy of Rs100 per litre. Owners of vehicles with engines up to 800cc will receive Rs1,000 in relief every 10 days based on a monthly allocation of 30 liters and a relief rate of Rs100 per litre.

The decision was taken during an ECC meeting chaired by Finance Minister Muhammad Aurangzeb at the Finance Ministry in Islamabad on Monday.

According to the Finance Ministry, the committee approved implementation of the Prime Minister’s Fuel Relief Scheme to provide targeted assistance to lower-income groups following increases in petroleum prices.

The scheme will be available only to non-commercial users with each eligible person or vehicle owner allowed to receive relief for only one vehicle.

The Ministry of Information Technology and Telecommunications will introduce and manage the Fuel Pass System (FPS), through which the subsidy will be distributed digitally.

The government says the digital mechanism is intended to make the relief process transparent and ensure that benefits reach eligible consumers.

The ECC also approved a Rs75 billion Technical Supplementary Grant (TSG) to finance implementation of the fuel relief programme.

The committee also considered a Petroleum Division proposal concerning the upgrading of existing and brownfield refineries under the Pakistan Oil Refining Policy 2023.

The ECC approved a draft Upgrade Agreement that will establish a framework for implementing and monitoring refinery modernisation projects and associated incentives.

The upgrade projects will have a completion period of five years according to the decision.

The ECC also approved a proposal concerning the settlement of financial matters involving oil marketing companies (OMCs).

Under the approved arrangement, unadjusted input sales tax claims accumulated by OMCs between July 2025 and June 2026 will be compensated through the Inland Freight Equalization Margin (IFEM).

The mechanism will serve as an interim arrangement for settling the claims, subject to the required scrutiny and verification by the relevant authorities.

The committee also approved an implementation framework concerning the restructuring of ownership and administrative control of the Pakistan National Shipping Corporation (PNSC).

The framework was approved in line with recommendations made by an implementation committee headed by the Minister for Privatization.

The ECC also considered a proposal from the National Food Security and Research Division seeking permission to export an additional 200,000 metric tonnes of sugar.

The committee approved recommendations put forward by the steering committee dealing with sugar-related matters.

The decision includes safeguards intended to help maintain stability in the domestic sugar market and prevent the additional exports from creating undue pressure on local supplies and prices.

In another major decision, the ECC approved a Rs3 billion Technical Supplementary Grant for the purchase of 15 bulletproof sedans.

The vehicles will be used during the Shanghai Cooperation Organisation (SCO) Council meeting scheduled to take place in Islamabad in September 2027.

Officials told the committee that the vehicles are required to provide secure transportation for visiting heads of state.

The ECC stressed the importance of completing preparations well in advance to ensure comprehensive security and appropriate transport arrangements for foreign leaders attending the high-level meeting.

The committee also referred to security and logistical arrangements made during the recent SCO heads of state meeting in Kyrgyzstan describing them as a model that could be followed for the Islamabad summit.

The committee also reviewed a proposal concerning standards and regulatory requirements for the commercial import of used vehicles.

However, the matter was deferred. The ECC directed officials to resubmit the proposal after obtaining recommendations from a committee formed to review the vehicle import inspection system.

The latest ECC decisions cover fuel assistance, refinery modernisation, oil-sector financial settlements, sugar exports, shipping-sector restructuring and preparations for the upcoming SCO summit.