ECC approves Rs75bn fuel relief package for motorcycles, rickshaws, 800cc cars

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved a Rs75 billion Technical Supplementary Grant (TSG) for the Prime Minister’s Fuel Relief Scheme, providing targeted fuel relief to owners of two- and three-wheelers and cars up to 800cc.

The ECC, which met at the Finance Division under the chairmanship of Finance Minister Senator Muhammad Aurangzeb, considered the Petroleum Division’s summary on the Prime Minister’s Fuel Relief Scheme aimed at providing relief to lower-income segments following the increase in petroleum prices.

Under the approved scheme, owners of two- and three-wheelers will receive fuel relief of Rs500 per week, equivalent to five litres at Rs100 per litre. Owners of cars up to 800cc will receive Rs1,000 relief for ten days, based on a monthly allocation of 30 litres at Rs100 per litre.

The scheme will be restricted to non-commercial users, while the relief will be limited to one vehicle per user or owner.

The Ministry of Information Technology and Telecommunication will deploy and manage the Fuel Pass System (FPS) for digital management and transparent delivery of the relief.

According to the ECC, the targeted and digitally managed mechanism is aimed at ensuring that the benefit reaches eligible consumers efficiently while strengthening transparency and accountability in implementation.

The ECC approved Rs75 billion as TSG for implementation of the fuel relief scheme.

The ECC also approved the Petroleum Division’s summary regarding the Draft Upgrade Agreement under the Pakistan Oil Refining Policy for Upgradation of Existing/Brownfield Refineries, 2023, as amended in August 2026.

The agreement will provide the framework for implementation and monitoring of refinery upgradation projects and associated incentives, with a completion period of five years.

In another petroleum-sector decision, the ECC approved the Petroleum Division’s proposal for settlement of financial matters of oil marketing companies (OMCs), including compensation of their unadjusted input sales tax claims for July 2025 to June 2026 through the Inland Freight Equalization Margin (IFEM).

The arrangement will serve as an interim mechanism for settlement of the claims, with due diligence and verification to be ensured by the concerned authority.

The ECC also approved the Implementation Framework for restructuring the ownership and management control of Pakistan National Shipping Corporation (PNSC), as recommended by the Implementation Committee headed by the Minister for Privatisation.

The committee deferred a summary submitted by the Science and Technology Division seeking review of an earlier ECC decision regarding standards and regulatory requirements for commercial imports of used vehicles.

It directed that recommendations of the committee constituted to review the Engineering Development Board’s vehicle import inspection regime be obtained and the summary resubmitted accordingly.

The ECC also approved recommendations of the Steering Committee on Sugar for export of 200,000 metric tonnes of surplus sugar, with appropriate safeguards to maintain domestic price stability.

The committee further approved a Rs3 billion Technical Supplementary Grant through the Cabinet Division for purchasing 15 bullet-proof sedan vehicles for use during the Shanghai Cooperation Organisation (SCO) Council Summit to be hosted by Pakistan in Islamabad in September 2027.

The vehicles were considered necessary for ensuring secure transport of heads of state attending the summit. The ECC stressed the need for timely and comprehensive preparations for the event and discussed high-profile security arrangements observed during the recent SCO summit in Kyrgyzstan.

The meeting was attended by Federal Ministers Rana Tanveer Hussain, Qaiser Ahmed Sheikh, Jam Kamal Khan, Sardar Awais Ahmad Khan Leghari, Ali Pervaiz Malik and Shaza Fatima Khawaja, besides Adviser to the Prime Minister on Industries and Production Haroon Akhtar Khan, Adviser to the Prime Minister on Privatisation Muhammad Ali, federal secretaries and senior officials of relevant ministries, divisions and regulatory authorities.