ECC approved to release $16.46 mn to PIAA

ECC approved to release $16.46 mn to PIAA

The Federal Minister for Finance, Senator Mohammad Ishaq Dar chaired the meeting of Economic Coordination Committee of the Cabinet on Saturday at the Prime Minister’s Office.

ECC on a proposal moved by the Aviation Division, approved in principle release of first tranche of $ 16.46 million for December out of the total $ 52 million requested by Pakistan International Air Lines for the induction of 15 aircrafts in its fleet on dry lease. This amount will be injected as equity by the GOP. PIA shall complete all codal formalities in this regard, fully adhering to the procurement rules. ECC has constituted a committee comprising Secretary Finance, Chairman SECP and Secretary P&NR to analyze financial statements/projections before the second tranche is released. PIA will revert to ECC after 20^th December when the amount granted has been fully exhausted for the fresh installments which will be paid on monthly basis as per requirement.

The chair directed PIA authorities to inform the forum at least 2 weeks before the actual payments are due so that the timely release of funds is made possible.

The Committee also approved the establishment of Inland Container Terminal in Sialkot under the Customs Act 1969. The addition of one more inland container terminal in Sialkot would not only provide facilitation to exporters but will also improve services because of healthy competition, the ECC was informed.

ECC also approved the allocation of gas from existing and new gas fields as requested by the Ministry of Petroleum and Natural Resources. According to the approved plan 30MMcfd additional Adhi gas is to be allocated to SNGPL enabling it to meet its existing contractual obligations. 01 MMCFD Gopang gas & 02 MMCFD Nim-01 gas respectively is allocated to SSGCL. The consistent decline in the level of gas production from the existing fields has triggered a huge gap between demand and supply of gas on natural gas distribution system. The Ministry of Petroleum and Natural Resources is vigorously pursuing LNG import and transnational gas pipeline projects which will help sustain supplies to the system.

Finance Minister on this occasion reiterated that proposals submitted to the ECC must properly reflect the financial implications of the projects and encompass all related aspects.