The Economic Coordination Committee (ECC) authorized Rs. 8 billion in cash on Friday to resurrect the national airline Pakistan International Airlines (PIA).
Dr. Shamshad Akhtar, caretaker Federal Minister for Finance, presided over a meeting of the Cabinet’s Economic Coordination Committee (ECC) yesterday.
The Aviation Division presented a proposal to the Civil Aviation Authority (CAA) for financial assistance to Pakistan International Airlines Corporation Limited (PIACL) for certain urgent needs of the airline.
ECC Approved Rs. 8 Billion For PIA To Clear Its Dues
The committee decided to adopt the Aviation Division’s proposal for bridge finance using CAA’s resources of Rs. 8 billion for the national flag carrier to satisfy emergent requirements linked to outstanding payments after extensive debate and deliberation.
The ECC authorized the Aviation Division to carry out the bilateral agreement between the CAA and the PIA.
Fawad Hassan Fawad, Caretaker Minister for Privatization, Sami Saeed, Adviser to the Prime Minister on Aviation Air Marshal Farhat Hussain Khan, Federal Secretaries, and other senior officers from relevant ministries attended the meeting.
PSO Fuel Supply Cut
A day earlier, Pakistan State Oil (PSO) ordered the national flag carrier to pay its outstanding bills in order to resume uninterrupted fuel supply.
PIA’s continued disrespect for their financial commitments, which have now mounted to a worrisome Rs. 26.8 billion, has led to the decision to curtail fuel delivery.
It is worth noting that the national flag carrier has canceled nearly 300 flights in the last 10 days owing to a lack of fuel.
To read our blog on “PIA is near to fall, over 300 flights cancelled in 10 days,” click here.