File photo of interim Finance Minister Shamshad Akhtar
The Economic Coordination Committee (ECC) of the federal cabinet on Wednesday approved a hike to the margins of petroleum dealers and oil marketing companies (OMCs) in line with commitments to them from the previous government.
Chaired by interim Finance Minister Shamshad Akhtar, the ECC meeting approved a Rs. 1.64/liter increase for fuel sales by dealers to be imposed in four instalments of Rs. 0.41/liter every two weeks from Sept. 15 till Oct. 31. It similarly approved a hike of Rs. 1.87/liter hike for OMCs, to be applied in four instalments of Rs. 0.47/liter.
Following the decisions, the margin for dealers has been increased from Rs. 7/liter to Rs. 8.64/liter, while OMCs’ margin has gone up from Rs. 6/liter to Rs. 7.87/liter.
Also on Wednesday, the ECC reviewed the total debt and liabilities of PIA, which stood at Rs. 743 billion—five times its total value—in December 2022. Former Railways Minister Khawaja Saad Rafique had warned that if the situation were not addressed, PIA’s debt and liabilities could hit Rs. 2 trillion by 2030, with annual estimated losses of Rs. 260 billion. During the meeting, the Aviation Ministry submitted a report outlining the government’s financial support for PIA, as well as proposals for its restructuring. The cabinet body then decided to form a committee to assess the restructuring plan.
The ECC also rejected a request to defer a monthly payment of Rs. 1.3 billion federal excise duty by PIA to the FBR, as well as Rs. 700 million/month to the CAA as embarking charges.
The cabinet body also approved a technical supplementary grant of Rs. 40 billion for various approved projects of defense services and international security allowances, subsidies and miscellaneous expenditures during the ongoing fiscal year. This includes Rs. 33 billion for the Pakistan Army; Rs. 7 billion for the Navy; and Rs. 50 million for the Air Force.