Pakistan ECC Approves Uniform Fuel Charges

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Islamabad, August 20, 2025, The Economic Coordination Committee (ECC) of Pakistan’s Cabinet approved a proposal on Tuesday from the Power Division for the uniform application of fuel charges adjustment across the country.

The ECC convened under the chairmanship of Finance and Revenue Minister Senator Muhammad Aurangzeb to review key economic and development matters. Federal Minister for Petroleum Ali Pervaiz Malik, Special Assistant to the Prime Minister for Industries & Production Haroon Akhtar Khan, federal secretaries, and senior officials from relevant ministries were present.

The committee also discussed a summary submitted by the Ministry of Maritime Affairs regarding the arrest of Pakistan National Shipping Corporation (PNSC) vessels in South Africa over claims by M/s Coniston against Pakistan Steel Mills Limited. After deliberation, the ECC instructed the Finance Division to reimburse Rs 330.526 million to PNSC through a Technical Supplementary Grant (TSG), following a previous ECC decision made in 2017. The Ministry of Industries & Production was directed to expedite arbitration proceedings and report progress within three months.

On other key matters, the ECC approved a term sheet prepared by stakeholders including the National Energy Efficiency & Conservation Authority (NEECA), State Bank of Pakistan (SBP), and participating banks, as part of the Prime Minister’s Fan Replacement Programme. To initiate the program, a TSG of Rs 2 billion was approved in favor of NEECA.

Additionally, a TSG of Rs 250 million was allocated to the National Security Division for its Strategic Policy Planning Cell. Remaining funds will be released in phases following review and consultation with the Finance Division to ensure rationalized expenditures.

The ECC also granted in-principle approval to a proposal from the National Disaster Management Authority (NDMA) for federal assistance to areas affected by recent monsoon rains. A relief package of Rs 5.8 billion was approved, with immediate disbursement of Rs 4 billion to address urgent needs.

On the financial technology front, the ECC approved a Rs 3.5 billion TSG for the current fiscal year to subsidize RAAST QR Code-based person-to-merchant payments. This allocation is intended to accelerate digital adoption and strengthen Pakistan’s digital economy, with provision for continuation over the next three years. The State Bank of Pakistan will implement the scheme and provide a comprehensive evaluation report to the ECC by the end of the fiscal year on its operational effectiveness.

The ECC’s decisions reflect the government’s ongoing focus on stabilizing fuel pricing, supporting disaster-affected communities, and promoting digital economic initiatives, while ensuring fiscal oversight and effective use of public resources.