ISLAMABAD -  The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved additional guarantees of Rs10.5 billion to cater for financial needs of Pakistan International Airlines Corporation Limited (PIACL).

The ECC has also approved disbursement of salaries for the month of October 2016 to the employees of Pakistan Steel Mills Corporation. The ECC, which met under the chair of Finance Minister Ishaq Dar at Prime Minister’s Office, has considered the proposal of the Aviation Division.

The top economic decisions making body of the country approved the summary to increase the Government of Pakistan’s guarantee limit for Pakistan International Airlines Corporation Limited (PIACL) by Rs10.5 billion from Rs151 billion to Rs161.5 billion, in order to cater to the immediate financial needs of PIACL.

The Aviation Division has submitted to the ECC that financial needs of the PIACL have enhanced after the crash of PK-661 last month carrying 48 passengers and crew crashed on the way to Islamabad from Chitral.

Sources informed The Nation that financial constraints of the PIACL have increased, as the Pakistan State Oil (PSO) refused to provide fuel supply due to non-payment. Similarly, Saudi Arabia Civil Aviation Authority (GACA) also asked PIA to make payment for operations.

PIACL currently needs Rs6.7 billion to meets its liabilities including Rs1 billion of PSO, Rs1.1 billion of lease rental dry lease aircrafts, Rs800 million under Federal Excise Duty and other taxes, Rs570 million of TFC mark-up, Rs500 million of provident funds arrears, Rs567 million of engineering service and spare parts and Rs870 million non-payment of GACA.

The ECC also decided to form a committee to be chaired by Federal Minister for Planning and Development Ahsan Iqbal and comprising Privatisation Commission Chairman Mohammad Zubair, PM’s Special Assistant on Revenue Haroon Akhtar Khan, EAD Secretary Tariq Bajwa, and PIA Acting Chairman Irfan Elahi to finalise a business plan for improving the financial and operational performance of PIACL on a sustainable basis, in coordination with the PIA management.

ECC also considered and approved the proposal by Ministry of National Food Security and Research for the extension of time period for the export of surplus wheat and wheat products from December 31, 2016 to March 15, 2017. In view of the availability of surplus wheat stocks in the country, ECC also allowed the export of additional quantity of 400,000 tons of wheat and wheat products by Punjab and Sindh governments.