The Economic Coordination Committee (ECC) of the Cabinet on Saturday decided to approve, in principle, a proposal moved by the Aviation Division to release a tranche of $16.46 million for December out of the total $52 million requested by PIA to procure 15 aircraft on dry lease.
This amount will be injected as equity by the government of Pakistan.
PIA has been directed to complete all formalities in this regard, fully adhering to the procurement rules.
For releasing the second tranche, the ECC constituted a committee comprising Secretary Finance, Chairman SECP and Secretary P&NR to analyse financial statements and projections.
PIA is expected to revert to the ECC after December 20 for seeking the second tranche which will be paid on monthly basis as per requirement.
Chairing the meeting, Finance Minsiter Ishaq Dar directed PIA authorities to inform the forum at least two weeks before the actual payments are due so that the timely release of funds is made possible.
Gas reallocations
The ECC also approved a proposal for allocating gas from existing and new gas fields to SNGPL and SSGC after dwindling production widened the demand-supply gap.
The Ministry of Petroleum and Natural Resources had proposed that 30MMcfd additional gas from Adhi field will be allocated to SNGPL enabling it to meet its existing contractual obligations.
Dar reiterated that proposals submitted to the ECC must properly reflect the financial implications of the projects and encompass all related aspects.
Container terminal
The ECC also approved the establishment of an Inland Container Terminal in Sialkot under the Customs Act 1969.
The addition of one more terminal in Sialkot is expected to provide facilitation to exporters.
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A BIG THANKS TO THE GOVT. OF PAKISTAN (ECC PLUS AVIATION DIVISION) AND THE TAX BEARERS!! I HOPE ONE DAY SOON THE AIRLINE WOULD HAVE A POSITIVE PERFORMENCE INDICATOR AND WILL START ITS JOURNEY TOWARDS SUCCESS. INAHALLAH AMEEN.
It is ridiculous to keep doling money out to PIA without getting some guarantees from its union & management. There shouldn't be any penny given to it without putting together a plan to reduce its workforce which should be inline with rest of airlines in the world. Anyone who claims that workforce is not the issue then look at the results and tell why its performance is pathetic.