ECC Approves Customs Bonded Petroleum Imports and $153.855m PIA Guarantee

The Economic Coordination Committee (ECC) of the Cabinet has approved several measures aimed at strengthening Pakistan’s energy security and petroleum supply chain, including allowing petroleum imports through customs-bonded storage facilities and approving a $153.855 million government guarantee for a PIA-related financing arrangement.

 

The ECC meeting, chaired by Finance and Revenue Minister Muhammad Aurangzeb, approved the import of petroleum products on foreign suppliers’ accounts through customs-bonded storage facilities.

 

The policy is intended to strengthen key components of Pakistan’s energy security framework, including the development of strategic petroleum reserves, greater indigenisation and expansion of customs-bonded storage capacity. The move is expected to support a more resilient and sustainable petroleum supply chain.

 

The committee also approved a new Sale and Purchase Agreement between Pakistan State Oil (PSO) and Oman-based OQ Trading under an earlier Inter-Governmental Agreement between Pakistan and Oman. The agreement is aimed at expanding cooperation in the energy sector and strengthening petroleum supply arrangements.

 

Separately, the ECC approved a government guarantee of $153.855 million, equivalent in Pakistani rupees, based on a term sheet agreed between PIA Investments Limited (PIAIL) and National Bank of Pakistan (NBP).

 

The committee also approved the provision of PASSCO wheat stocks to recipient agencies at a ratio of 85% local and 15% imported wheat to facilitate the timely disposal of imported stocks.

 

In addition, the ECC approved the formation of a committee to negotiate a settlement for the redevelopment of the Roosevelt Hotel in coordination with the relevant union.

 

The meeting also approved a technical supplementary grant of Rs7.797 billion for the Greater Karachi Bulk Water Supply Scheme (K-IV), funded through the Federal Consolidated Fund following the transfer of funds by the Government of Sindh.

 

A further supplementary grant of Rs567.032 million was approved for Frontier Corps Balochistan (South) to support security arrangements for activities related to the Reko Diq project.