trade reforms

ECC used vehicles import pilot project Pakistan has been formally approved by the Economic Coordination Committee in a key policy meeting held at the Finance Division. The committee allowed the temporary import of used vehicles and auto parts for repair, refurbishment, and re-export under a controlled pilot framework. The ECC placed the scheme under a one-year review condition. Officials said the move aims to test feasibility, monitor economic impact, and assess compliance with trade regulations before a permanent decision. Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the meeting. Senior officials from relevant ministries attended the session and reviewed multiple economic and policy matters. Economic Indicators Show Gradual Stabilization During the briefing, the Ministry of Planning shared an update on key economic indicators. The committee was informed that inflation trends are showing signs of gradual stabilization after recent volatility. Officials reported that coordinated efforts between federal, provincial, and district authorities have improved price monitoring. The National Price Monitoring Committee played a key role in strengthening oversight and market intervention. The Sensitive Price Index (SPI) showed mixed movement. However, data confirmed that the pace of inflation in essential goods has slowed in recent weeks. Prices of Essential Commodities Show Mixed Trends The ECC reviewed detailed price data of essential commodities. Officials reported that several items have recorded a downward trend in prices. Tomatoes, onions, wheat flour, garlic, LPG, and sugar showed price reductions in recent weeks. These changes helped ease pressure on household budgets in some segments of the market. At the same time, prices of eggs, chicken, pulses, cooking oil, bread, and milk recorded minor increases. Despite this, officials said the overall trend indicates gradual stabilization rather than sharp inflation spikes. The committee noted that several commodities are now moving closer to pre-volatility price levels. Authorities described this as a positive signal for economic stability. ECC Expresses Satisfaction Over Inflation Control Measures The ECC expressed satisfaction over the improving inflation outlook. Members credited timely policy interventions and improved monitoring systems for the recent stability in prices. The committee stressed the need to maintain strict market oversight. It also emphasized protecting consumers while ensuring macroeconomic balance. Officials said continued coordination between institutions will remain necessary to sustain price stability in the coming months. ECC Approves Funding for PIA Holding Company The ECC also reviewed a financial summary submitted by the Ministry of Defence regarding Pakistan International Airlines Corporation Limited (PIACL). The committee approved Rs. 5.985 billion allocation for PIA Holding Company Limited. The funds will be used to settle outstanding liabilities. This includes reimbursement of medical expenses, pension payments, and salary disbursements for employees. The ECC directed that the matter related to payments to the National Insurance Company Limited be taken up with the relevant revenue authority for adjustment. The decision must align with audit recommendations. Ban on Forced Labour Goods Strengthened In a significant policy decision, the ECC approved amendments to the Import Policy Order 2022. The amendment bans the import of goods produced through forced labour. The decision aligns Pakistan’s trade policy with International Labour Organization conventions. Officials said the move strengthens ethical trade compliance and improves international credibility. The Commerce Division proposed the amendment as part of broader import regulation reforms. Used Vehicles and Auto Parts Import Scheme Introduced The ECC also approved amendments to the Import-cum-Export Scheme under the Import Policy Order 2022 and Export Facilitation Scheme 2021. The decision allows the temporary import of used vehicles and auto parts under a pilot project. These goods will be imported for repair, refurbishment, and re-export purposes. Officials said the scheme aims to support industrial activity and create export opportunities. It will also help test regulatory controls before broader implementation. The committee directed that the pilot project be reviewed after one year. The review will assess economic benefits, regulatory compliance, and market impact.