The Economic Coordination Committee (ECC) of the cabinet, chaired by Finance Minister Muhammad Aurangzeb, decided on Monday to impose an immediate ban on the import of ozone-depleting insulation and foaming materials — polyol blended with hydrochlorofluorocarbons (HCFCs) — citing environmental concerns. The committee also approved supplementary grants totaling Rs10 billion and reiterated its earlier decision to grant industry status to the warehousing and logistics sector.

The ECC approved the commerce ministry’s proposal to ban the import of polyol blended with HCFC-141b and HCFC-142b, widely used in refrigeration, insulation, and foaming industries. These chemicals, which have been banned in many countries for decades due to their harmful environmental impact, will no longer be allowed for import after the end of this month.

The committee directed the Ministry of Climate Change to collaborate with the Ministry of Industries and Production to ensure the industry is properly informed and given sufficient time to adjust to alternative materials, which are already available in the market. Additionally, the ECC instructed that no new letters of credit (LCs) for the banned chemicals be opened.

Supplementary Grants Approved
The ECC approved eight supplementary grants worth Rs10 billion, including:

• Defence Ministry: An unspecified grant of Rs1.945 billion.
• National Commission on the Status of Women (NCSW): Rs5.276 million reallocated from the Ministry of Human Rights for women empowerment and gender equality initiatives.
• Public Sector Development Programme (PSDP): Rs2.462 billion for 15 projects under the PSDP 2024-25, including clearing liabilities for the “Korean Culture Week” and the 23rd Shanghai Cooperation Organisation (SCO) Council of Heads of Government (CHG) meeting held in Islamabad last year. The ECC approved Rs120.822 million to settle these outstanding payments.
• Ministry of Interior: Rs650.357 million for security arrangements during the SCO Summit, repairing damaged Safe City cameras, and other law enforcement needs.
• Ministry of Federal Education and Professional Training: Rs1.5 billion to increase salaries of faculty members under the Tenure Track System, which had not been revised since 2021.
• Safe City Project Islamabad: A payment of $6.170 million (approximately Rs1.72 billion) to Huawei Technologies Co. of China to clear the remaining 5% of the contract cost, as directed by the Islamabad High Court.

The ECC rejected a proposal by the Ministry of Industries to continue the Prime Minister’s Relief Package through the Utility Stores Corporation (USC) for 2024-25. However, it approved Rs1.679 billion to cover expenses incurred by the USC between June 30 and August 18, 2024, on the condition that the subsidy is budgeted for this year and no further expenditures are carried forward.

Industry Status for Warehousing and Logistics Sector
The ECC reiterated its August 15, 2024, decision to grant industry status to the warehousing and logistics sector. Finance Minister Aurangzeb expressed displeasure over the lack of implementation of the decision, despite nearly five months having passed. He emphasized the importance of timely policy measures to address critical economic, energy, and industrial needs, with a focus on transparency and efficiency.