ECC bans baggage car imports, approves circular debt management plan

The government on Tuesday banned the import of used cars under the baggage scheme and tightened restrictions for the other two schemes, including a minimum three-year stay abroad, restricting competition for foreign firms in breach of commitments made to the International Monetary Fund (IMF). The Economic Coordination Committee (ECC) of the Cabinet, which tightened the conditions for car imports, also allowed the Power Division to add Rs522 billion to the flow of circular debt under the newly approved Circular Debt Management Plan 2025-26. The Rs522 billion addition in the flow will be offset using taxpayers' money to keep the overall circular debt at last year's level. Finance Minister Muhammad Aurangzeb chaired the ECC meeting. According to another approval by the ECC, Rs2.5 billion of taxpayers' money will be used to pay pensions and medical bills of Pakistan International Airlines (PIA) employees. The Rs2.5 billion is over and above the Rs31.7 billion that the government has already budgeted to pay interest on PIA's legacy loans.