ECC approves $130 million cash support for PIAC

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved US$130 million cash support for Pakistan International Airlines (PIAC).

 

The Minister for Finance and Revenue chaired the meeting of ECC which approved Aviation Division summary requesting cash support as required by PIAC. 

 

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The ECC was informed that the airline has experienced a significant decline in revenues and cash flows due to pandemic and unprecedented travel bans/lockdowns imposed by various countries. Moreover, the ECC also approved the enhancement of the existing approved guarantee enabling PIAC to overcome its financial challenges. 

 

The meeting also approved the Ministry of Industries and Production summary for provision of RLNG to SNGPL based plants (Agritech and Fatima Fertilizer) for Rabi season 2021-22. The ECC approved the provision of 70 MMG RLNG with the direction to hold a consultative session with the representatives of fertilizer manufacturers to work out the overall demand for urea in the country. The ECC was further directed to consider the possibility to import urea (if needed) to maintain buffer stocks.

 

The Ministry of Commerce presented a summary regarding revocation of the conditions of minimum export price (MEP) on the export of surgical instruments except for “single-use” surgical instruments. After deliberation, the ECC approved that the necessary amendments be made in Export Policy Order, 2020 to revoke the condition of MEP to make our exports competitive in the global market. 

 

Ministry of National Food Security and Research submitted a summary before the forum for the provision of wheat to AJ&K, out of PASSCO stock, for the financial year 2021-22. The ECC approved the provision of 300,000 metric tons of wheat (in total) to AJ&K at the ratio of 80/20 as a mixture of local/imported stock.

 

Federal Finance Minister, as a Chairman of ECC, stated that the government is firmly committed to stabilize the prices of wheat and ensure its smooth supply at affordable prices across the country.

The ECC also approved Rs.3860 million in favour of the Revenue Division (FBR) as a bridge financing facility to upgrade Information Technology (IT) infrastructure given the increased frequency and severity of cyber-attacks to ensure elimination of risk to taxpayers’ data. 

 

The meeting was attended by Federal Minister for Planning Asad Umar, Federal Minister for National Food Security & Research (NFS&R) Syed Fakhar Imam, Federal Minister for Energy Hammad Azhar, Federal Minister for Maritime Affairs Syed Ali Zaidi, Federal Minister for Industries and Production Khusro Bakhtiar, Adviser on Commerce Abdul Razak Dawood, Minister of State for Information Farrukh Habib, Special Assistant to Prime Minister (SAPM) on Power and Petroleum Tabish Gauhar, Federal Secretaries, FBR Chairman, Deputy Chairman Planning and other senior officers. The Governor SBP Dr Reza Baqir also participated through a video link

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