The Economic Coordination Committee (ECC) of the federal cabinet on Saturday approved release of first tranche of $ 16.46 million for December, out of the total $ 52 million requested by the Pakistan International Air Lines for the induction of 15 aircrafts in its fleet on dry lease.
The ECC meeting was chaired by federal minister for Finance Ishaq Dar at the Prime Minister’s Office. The proposal for release of $16.46 million was moved by the aviation division.
This amount will be injected as equity by the government. The PIA will complete all codal formalities in this regard, fully adhering to the procurement rules. The ECC has constituted a committee comprising secretary finance, SECP chairman and P&NR secretary to analyse financial statements/projections before the second tranche is released.
The PIA will revert to the ECC after December 20 when the amount granted has been fully exhausted for the fresh installments which will be paid on monthly basis as per requirement.
Ishaq Dar directed the PIA authorities to inform the forum at least two 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.
The 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.
The 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.
