ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved wheat stocks for all recipient agencies, set up a committee to negotiate a settlement on redevelopment of the Roosevelt Hotel in New York, and allowed international oil suppliers to store petroleum products in Pakistan for later domestic sale or re-export.
In another development, Oman has extended a $200 million deferred-payment facility for petrol and high-speed diesel imports. The ECC met on Monday at the Finance Division under the chairmanship of Minister for Finance and Revenue Senator Muhammad Aurangzeb. It considered and approved a summary regarding the provision of PASSCO’s wheat stocks to all recipient agencies at a ratio of 85 per cent local and 15 per cent imported wheat. The proposal was based on a recommendation of the Board of Directors of PASSCO to ensure the timely disposal of imported wheat stocks. The sources said the imported wheat, usually sourced from Ukraine or Russia, was being blended with local wheat stocks to enable it to be consumed easily by domestic customers. It also approved a committee to negotiate a settlement for the redevelopment of the Roosevelt Hotel in coordination with the union and a government guarantee of $153.855 million, equivalent in Pakistani rupees, based on a term sheet agreed between PIA Investment Management Company Limited and the National Bank of Pakistan .
The ECC also approved a proposal for a Technical Supplementary Grant of Rs7,797.160 million submitted by the Water Resources Division for the Greater Karachi Bulk Water Supply Scheme (K-IV Project). The amount was remitted by the Government of Sindh from the Provincial Consolidated Fund through the Federal Consolidated Fund. It also approved a proposal for a Technical Supplementary Grant of Rs567.032 million, submitted by the Interior and Narcotics Control Division, out of the savings of the Finance Division, to Frontier Corps Balochistan (South) for the smooth and secure implementation of Reko Diq project activities.
In a significant development, Pakistan has taken a major step towards reshaping its petroleum import and storage system, opening the door for international oil suppliers to bring petroleum products into the country, hold them in customs-bonded storage and decide later whether to sell them in the domestic market or re-export them.
In this context, the ECC approved the Policy Guideline on Import on Foreign Suppliers’ Account through Customs Bonded Storage Facilities-2026, aimed at attracting foreign investment in petroleum storage while creating an additional layer of energy security for the country. This allows international suppliers an alternative to the conventional cargo-by-cargo import model. Instead of importing petroleum solely against an immediate domestic sale, foreign companies will be able to position inventories inside Pakistan, retain ownership while the products remain under customs bond, and decide later whether market conditions favour a local sale or re-export.
The government sees the arrangement as more than a storage facility. If implemented effectively, it could position Pakistan as a regional petroleum storage and trading hub, providing international suppliers with access to one of South Asia’s major energy markets while giving Pakistan additional petroleum stocks and greater flexibility during supply disruptions. While talking to The News, Federal Minister for Petroleum and Natural Resources Ali Pervaiz Malik, said that the approval of the customs-bonded storage policy would enable Pakistan to attract significant investment from Gulf countries to develop bonded storage facilities along the country’s coastal areas. The foreign suppliers would be able to store and re-export petroleum products from these facilities. At the same time, Pakistan would be able to access these stocks when needed, particularly in an emergency, such as a natural disaster or a situation involving war or a major disruption in supplies.
“The bonded-storage initiative has come alongside a significant petroleum supply arrangement with Oman,” the minister said, adding that “Oman has extended a $200 million deferred-payment facility to Pakistan, under which the country will import petrol and high-speed diesel.”
Pervaiz Malik said that the ECC had approved a Sale Purchase Agreement (SPA) with Oman under an earlier Inter-Governmental Agreement designed to promote cooperation between OQ Trading and Pakistan State Oil (PSO) and diversify Pakistan’s petroleum import sources. The policy indicates a broader government effort to diversify petroleum supplies, strengthen the country’s supply chain and move beyond dependence on securing individual cargoes for immediate domestic consumption.
Under the new framework for customs-bonded storage, international suppliers can bring petroleum products into approved bonded facilities without immediately triggering domestic duties and taxes. They can subsequently sell the products to Pakistani oil marketing companies (OMCs) and refineries when commercially favourable conditions emerge, or redirect the inventory to overseas markets. It covers a broad range of strategic energy commodities, including crude oil of all grades, motor spirit, high-speed diesel, jet fuel, fuel oil, LPG and LNG. The proposed locations for bonded storage include Port Qasim, KPT/Kemari, Hub, Gwadar, Mahmood Kot and Machike, Sheikhupura, subject to the relevant regulatory and safety approvals.
This gives the policy a geographic dimension that goes beyond Pakistan’s seaports. Bonded petroleum can be moved through the national pipeline network to approved inland storage facilities, allowing suppliers to position inventories closer to major consumption centres. A shift from cargo-by-cargo imports is at the heart of the new framework. The framework also envisages customs-supervised movement between approved bonded storage locations, pipelines, refineries, ports and export terminals. This could enable foreign suppliers to position stocks closer to major demand centres while preserving the option of redirecting those stocks to international markets.
For Pakistan, the potential strategic advantage is that more petroleum could be physically available within the country without the government or domestic companies having to purchase and own every barrel in advance. Gulf companies are among the potential beneficiaries. The government expects the policy to be particularly attractive to international suppliers from the Gulf and other major petroleum-producing and trading centres. The foreign suppliers would be able to participate through a registered liaison office, a locally established branch or an incorporated company acting as consignee. They could develop dedicated storage facilities or use licensed public and private bonded-storage facilities.
For international trading companies, the scheme allows petroleum to be stored under bond for later local sale or re-export, potentially positioning Pakistan as a regional petroleum storage hub. A key attraction is tax neutrality, with duties, taxes, levies, charges and cess not applying while products remain under bond and are not released for domestic consumption. When petroleum is sold locally, the purchaser will pay the applicable duties and taxes, while foreign suppliers will not need Sales Tax registration. Suppliers will also retain the right to re-export bonded petroleum without prior regulatory approval, subject to restrictions on sanctioned goods and items on the Negative List.
As a safeguard for the domestic market, OGRA would have first right of refusal over the final 10pc of bonded stocks, with two days to decide. The framework also allows the government to access privately owned bonded stocks during formally declared emergencies, including war, armed conflict, major natural disasters or a documented collapse in domestic supply.
Government-accessed stocks would be paid for at the prevailing international market price in foreign currency within 15 days, while foreign suppliers would face no minimum-stock obligation. The framework also allows bonded petroleum to be moved through the national pipeline network to inland storage, creating a more distributed supply system and reducing reliance on fresh import cargoes during disruptions.
