Govt tightens car import rules as ECC approves new mechanism

ISLAMABAD: The Economic Coordination Committee (ECC), chaired by Finance Minister Muhammad Aurangzeb, approved major policy changes regarding the import of vehicles.

The committee approved a new mechanism for car imports, under which only the transfer of residence and gift schemes will remain in place.

The mandatory gap for vehicle import has been extended from two to three years. It was further decided that imported vehicles cannot be transferred for one year and will be required to meet commercial safety and environmental standards.

The ECC also reviewed the Circular Debt Management Plan 2025–26, stressing the need for measures to ensure the financial sustainability of the power sector. The Power Division has been directed to prepare a mid-term plan to gradually reduce financial support. A follow-up mechanism for DISCOs will also be developed.

The committee decided to impose a ban on the import of chloroform, while trichloroethylene will only be allowed for pharmaceutical companies subject to a DRAP NOC.

The finance ministry rejected the proposal for a concessional gas tariff for Ghani Glass.

The ECC approved a TSG of Rs1.28 billion for the Pakistan Digital Authority and authorised the release of funds for the Cabinet Division’s development expenditures.

Additionally, Rs5 billion in supplementary funds were approved for the Housing and Works Division.

The meeting also approved the establishment of a special company to wind up PASSCO’s assets and liabilities, which will be dissolved once the process is completed.

The committee also gave in-principle approval for funds to meet pension and medical obligations of the PIA Holding Company.