ECC Expected to Approve Another Bailout Package for PIA – Research Snipers

ECC Expected to Approve Another Bailout Package for PIA

The ECC (Economic Coordination Committee) of the Cabinet would possibly be approving another bailout package for the PIA (Pakistan International Airlines) in the next week’s meeting.

The ECC meeting would be headed by Shahid Khaqab Abbasi—Prime Minister. The meeting would be considering the proposal by the aviation division for giving a bailout package to the flag bearing airline to get it out of terrible crises. The worth of the package is above rupees ten billion and is expected to enhance autonomous guarantees limit from rupees one hundred and sixty-two billion, as PIA is going through abysmal financial problems.

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Sardar Mehtab Ahmed Khan—Prime Minister’s Advisor on Aviation indicated that the losses incurred by PIA in 2016 only are of about rupees forty billion. The debt of the airline is raised up to a number of rupees 186.5 billion and the collected losses are rupees three hundred and sixteen billion. He informed media a couple of weeks back that if the government is set to pay a markup on loans costing $2 billion it would be beneficial for the revival of PIA.

The Pakistan International Airlines was on the top list of privatizations of the federal government under the international monetary fund programme. But, the government was unable to privatize the airline because of the severe pressure and opposition both from the opposing parties and labor union of the department.

The meeting might also discuss the case of the approval of the salaries of the workers of Pakistan Steel Mill which is not functioning because of the lack of monetary funds. The workers of PSM have not been getting any salaries since April. The ministry of industries and production has recommended the approval of the salaries amounting rupees 1.52 billion. An official of the ministry of finance informed that the approval of salaries of PSM workers is not a part of the meeting’s agenda but could be discussed as a special agenda.

The ECC would also be taking into consideration the proposal of Ministry of National Food Security and Research for approving the support cost of wheat for the season of 2017-18.

ECC would also be presented by four summaries by the Ministry of Petroleum and Natural Resources about the allocation of gas from Badin IV in Sindh province and others.

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