ISLAMABAD: The Economic Coordination Committee (ECC) on Monday approved the temporary import of used vehicles and auto parts for repair, refurbishment, and subsequent re-export under a pilot project, directing that the scheme be reviewed after one year.
The ECC meeting was held at the Finance Division under the chairmanship of Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb.
During the meeting, the committee was briefed by the Chief Economist of the Ministry of Planning, Development and Special Initiatives on recent trends in key economic indicators, particularly the prices of essential commodities and overall inflation.
The ECC was informed that, following a period of volatility, recent data indicates gradual stabilization in prices supported by coordinated efforts at the federal, provincial, and district levels. Institutional mechanisms, particularly through the National Price Monitoring Committee, have strengthened market oversight and enabled timely interventions.
According to the briefing, inflationary pressures persist but are moderating, with data indicating improved price stability. Weekly monitoring shows that, following a temporary increase, the pace of price hikes in essential items has slowed, with recent declines observed in the Sensitive Price Index (SPI).
A number of essential commodities, including tomatoes, onions, wheat flour, garlic, LPG etc have witnessed price reductions, while sugar has also shown a downward trend. At the same time, prices of items such as eggs, chicken, pulses, cooking oil, bread, and milk have recorded only marginal increases, indicating a broader easing in price pressures.
The ECC was further apprised that prices of key food and household items are gradually converging toward more stable levels, with some commodities returning close to pre-volatility benchmarks.
The ECC expressed satisfaction over the improving trend, noting that timely policy responses and strengthened monitoring mechanisms are yielding positive results. It emphasized the need to sustain these efforts to ensure continued price stability and protect consumers while maintaining macroeconomic balance.
The ECC also discussed a summary submitted by the Ministry of Defence regarding allocation of Rs. 5.985 billion in favour of PIA Holding Company Limited (PIAHCL) for settlement of liabilities of Pakistan International Airlines Corporation Limited (PIACL).
Out of the total amount, the Committee approved funding for reimbursement of medical and pension payments as well as for salary disbursements. It asked for taking up the matter regarding payment to the National Insurance Company Limited (NICL) with the relevant revenue authority for adjustment, in line with the recommendations of auditors.
Ban import of goods produced through forced labour
In addition, the ECC approved amendments to the Import Policy Order (IPO) 2022, as proposed by the Commerce Division, to prohibit the import of goods produced through forced labour, in line with Pakistan’s commitments under International Labour Organization (ILO) conventions.
Import of used vehicles and auto parts
In another summary submitted by the Commerce Division, the ECC approved amendments to the Import-Cum-Export Scheme of IPO, 2022 and Export Facilitation Scheme (EFS), 2021 to allow temporary import of used vehicles and auto parts for repair, refurbishment, and subsequent re-export under a pilot project, with directions for review after one year.
