The government of Pakistan Tehreek-e-Insaf (PTI) has given approval to the second bailout package for Pakistan International Airlines in 4 months. The approval was given on Tuesday for keeping the national airlines in the skies, as it has remained unsuccessful in putting up with a potential revival plan.
The Economic Coordination Committee (ECC) of the Cabinet gave approval of Rs5.6 billion for the PIA and left a decision of another of Rs8.4billion injection on the federal cabinet that would be meeting on Thursday.
The ECC also gave consent to the Frontier Oil Company—a subsidiary of the Frontier Works Organisation (FWO)—for building a Machike-Tarujabba Oil Pipeline project.
The second bailout package for the airline was approved by Asad Umar—Finance Minister without first securing the PIA revival plan.
Also Read: PIA Business Plan to be Ready by March End
The PIA management made another promise with eth ECC on the new business plan and gave March as a deadline this time.
The federal cabinet also took the decision to provide PIA with another Rs8.4 billion on coming Thursday that is tomorrow.
The ECC has given approval for the additional guarantees of Rs5.6 billion for repair and maintenance of engines and for the acquisition of the related spare parts for the making of th grounded planes operational, as per an official handout of the Ministry of Finance.
The government of PTI has already delisted the national flag carrier from the privatisation list without even preparing its revival plan.
The PIA owed $125.84 million for the foreign creditors which were supported by the sovereign guarantees. Owing to the depreciation of the rupee, the value of these guarantees has fallen.