Policy Shift: ECC Opens Door to Used Vehicle and Auto Part Imports

The Economic Coordination Committee (ECC) approved a one-year pilot scheme permitting temporary imports of used vehicles and auto parts for repair, refurbishment, and re-export.

The scheme amends the Import-Cum-Export framework under the Import Policy Order 2022 and the Export Facilitation Scheme 2021, enabling businesses to process foreign vehicles locally.

The committee directed that the pilot programme be reviewed after one year to assess its effectiveness and determine whether permanent amendments to policy are warranted.

The ECC meeting was chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb and held at the Finance Division in Islamabad.

The Chief Economist of the Ministry of Planning briefed the committee on recent trends in key economic indicators, including essential commodity prices and overall inflation.

The committee was told that price levels, after a period of volatility, are showing gradual stabilisation supported by coordinated federal, provincial, and district-level efforts.

The National Price Monitoring Committee has strengthened market oversight and enabled timely interventions to prevent excessive price increases across major consumer goods.

Inflationary pressures remain present but are moderating, with weekly data showing a slowdown in price increases across essential items in recent weeks.

The Sensitive Price Index has recorded recent declines, indicating broader easing of consumer price pressures following earlier volatility in food and household goods.

Prices of tomatoes, onions, wheat flour, garlic, and LPG have fallen, while sugar has also shown a downward movement in recent weeks.

Items such as eggs, chicken, pulses, cooking oil, bread, and milk recorded only marginal price increases, suggesting conditions are broadly stabilising for consumers.

The ECC expressed satisfaction over improving price trends and emphasised sustaining current policy efforts to protect consumers and maintain overall macroeconomic balance.

The ECC reviewed a Ministry of Defence summary regarding allocation of Rs 5.985 billion for settlement of liabilities of Pakistan International Airlines Corporation Limited.

The committee approved funding for reimbursement of medical payments, pension disbursements, and salary payments related to the PIA Holding Company’s outstanding financial obligations.

It directed that the matter of payment to the National Insurance Company Limited be referred to the relevant revenue authority for adjustment per auditor recommendations.

The ECC also approved amendments to the Import Policy Order 2022 to prohibit imports of goods produced through forced labour anywhere in the world.

The amendment aligns the trade policy with its commitments under International Labour Organization conventions, which prohibit goods linked to forced or compulsory labour practices.

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