ECC defers decision on import of banned used auto oil lube

Hydrocarbon Development Institute of Pakistan, Pakistan Council of Scientific and Industrial Research unable to determine if oil sample hazardous 

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet deferred the decision on import of banned used auto oil lube.

Finance minister Ishaq Dar presided over the meeting of the ECC. Sources said that as defined under Basel Convention the used auto oil contain hazardous wastes which are banned for trade worldwide.

The government on the recommendation of climate change ministry imposed a ban in IPO 2013. Subsequently, on the petition of  Amir Oil Pvt Ltd, Lahore High Court directed the commerce ministry to treat the representation from the petitioner and decide the matter in accordance with law within 30 days.

The Ministry of Commerce consulted climate change ministry to give justification on the ban of used auto lube oil and determine the nature of the oil imported by Aamir Oil Pvt Ltd as hazardous or otherwise. The oil sample was sent to Hydrocarbon Development Institute of Pakistan (HDIP) and Pakistan Council of Scientific and Industrial Research (PCSIR) but none of them could determine its hazardous nature either due to non-availability of requisite technical expertise or the non-existence of the parameter to declare oil as hazardous.

However, the point was raised that Basel Convention secretariat Geneva did not address the issue of auto lube oil and instead conveyed general policy provision which stated that water oils are considered by parties as hazardous wastes if they are unfit for their originally intended use. The importer claimed that the Basel Convention restricts the trade of those used oil which are not suitable after their intended use, but used auto oil lube remains as good for use in auto industry and there are no hazardous impurities.

Sources said that the ministry of commerce verified import/export data and revealed that the same is being traded worldwide. The reclamation process, in essence, is a recycling process and ministry of climate change used auto oil for recycling purposes. 

According to finance ministry, the ECC after discussion deferred a summary of Ministry of Commerce regarding Amendment in IPO-2022 pertaining to used auto lube oil. 

Other discussions 

In another summary, the Ministry of Commerce submitted a summary on amendments in the Import Policy Order-2022 with regards to import of live animals and animal products in line with the revised conditions/guidelines by the World Organization of Animal Health (WOAH) on the trade of cattle. The ECC after discussion approved the proposed amendments in the relevant clauses of IPO-2022.

The ECC approved Technical Supplementary Grant of Rs. 300 million in favour of the Ministry of Housing and Works for repair and maintenance of public buildings. The ECC also approved a supplementary grant of Rs 87 million in favour of Intelligence Bureau for payment of taxes and duties.

The ECC sent a summary of the Ministry of Information Technology and Telecommunication, seeking approval of NTC’s budget for financial year 2021-22 and 2022-23.


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Shahzad Paracha
Shahzad Paracha
The writer is a member of Pakistan Today's Islamabad bureau. He can be reached at [email protected]


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