The Economic Coordination Committee (ECC) of the Cabinet has approved draft upgrade agreements for existing and brownfield refineries under the Pakistan Oil Refining Policy for Upgradation of Existing/Brownfield Refineries, 2023, as amended in August 2026. The decision is aimed at establishing a formal framework for refinery modernisation projects and the incentives associated with their implementation.
The agreements are expected to be signed by all refineries subject to the availability of Prime Minister Shehbaz Sharif during September. According to the decision, the agreements will provide a framework for implementing and monitoring refinery upgradation projects, with the projects carrying a completion period of five years.
The ECC meeting was chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb at the Finance Division in Islamabad. The committee also approved several measures related to fuel prices, public-sector restructuring, taxation, sugar exports and preparations for an international summit to be hosted by Pakistan.
Among the major decisions was approval of the Prime Minister’s Fuel Relief Scheme, which is intended to provide targeted assistance to lower-income segments following an increase in petroleum prices. Under the scheme, owners of two- and three-wheelers will receive relief of Rs500 per week, equivalent to five litres at Rs100 per litre. Cars with engine capacity of up to 800cc will receive Rs1,000 in relief for ten days, based on a monthly allocation of 30 litres at Rs100 per litre.
The fuel support will be limited to non-commercial users, with relief restricted to one vehicle per user or owner. The Ministry of Information Technology and Telecommunication will deploy and manage the Fuel Pass System for digital administration and transparent distribution of the relief. The ECC also approved Rs75 billion as a Technical Supplementary Grant for implementation of the scheme.
The committee also approved the Implementation Framework for restructuring the ownership and management control of Pakistan National Shipping Corporation (PNSC). The framework was recommended by an Implementation Committee headed by the Minister for Privatisation and is intended to guide changes in the ownership and management structure of the national shipping entity.
On financial matters concerning Oil Marketing Companies, the ECC approved compensation for unadjusted input sales tax claims covering the period from July 2025 to June 2026. The claims will be settled through the Inland Freight Equalization Margin, providing an interim mechanism while due diligence and verification are carried out by the relevant authority.
A proposal from the Science and Technology Division seeking a review of an earlier ECC decision on standards and regulatory requirements for commercial imports of used vehicles was deferred. The ECC directed that recommendations from the committee established to examine the Engineering Development Board’s vehicle import inspection regime should be obtained before the matter is presented again.
The ECC also approved the export of 200,000 metric tonnes of surplus sugar. The decision endorsed recommendations of the Steering Committee on Sugar and included safeguards intended to protect domestic price stability and ensure that exports do not create excessive pressure in the local market.
Another financial approval involved Rs3 billion through a Technical Supplementary Grant for the purchase of 15 bullet-proof sedan vehicles. The vehicles will be used during the Shanghai Cooperation Organisation Council Summit, which Pakistan is scheduled to host in Islamabad in September 2027. The ECC considered the vehicles necessary for the security arrangements of visiting heads of state and referred to arrangements made during the recent SCO Summit in Kyrgyzstan.
The meeting was attended by Federal Ministers Rana Tanveer Hussain, Qaiser Ahmed Sheikh, Jam Kamal Khan, Sardar Awais Ahmad Khan Leghari, Ali Pervaiz Malik and Shaza Fatima Khawaja, along with Advisor to the Prime Minister on Industries and Production Haroon Akhtar Khan and Adviser to the Prime Minister on Privatisation Muhammad Ali. Federal secretaries, senior government officials and representatives of relevant ministries, divisions and regulatory authorities also participated in the meeting.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.