ISLAMABAD - The Economic Coordination Committee (ECC) of the Cabinet has approved additional guarantee of Rs5.6 billion for Pakistan International Airlines Company Limited (PIACL) for maintenance of engines and acquisition of related spares to operationalise grounded aircraft.
The ECC meeting, which was chaired by Finance Minister Asad Umar, has also approved measures for revival of cotton crop in the country. The meeting decided that due focus will be laid on the area of research and development, and that collaboration will be made with China to enhance cotton yield.
The top economic decisions making body of the country, the ECC, has considered the summary of the Civil Aviation Division to give another bailout package for the national flag carrier. The Civil Aviation Division argues that route rationalisation initiatives are being undertaken by PIACL however grounded aircraft are limiting its capabilities. The airline is striving to operationalise the grounded aircrafts on urgent basis. For recovery of grounded aircrafts, an additional guarantee to the extent of Rs 5.6 billion is required for the maintenance of engines and acquisition of related spare parts. The ECC accorded approval for additional guarantees to PIACL of Rs 5.6 billion for repair and maintenance of engines and acquisition of related spare parts for operationalising grounded planes. The step would strengthen PIACL’s route rationalization initiatives and add to revenue generation of the national flag carrier.
The ECC had approved GoP guarantee amounting to over Rs24 billion during financial year 2018-19, exclusively for engine overhaul requirements. The current level of GoP guarantee other than engine overhaul stood at Rs187 billion.
The ECC in consideration of proposal submitted by Petroleum Division gave its consent for the Frontier Oil Company to undertake/implement the Machike -Tarujabba Oil Pipeline project. The project, consisting of three sections i.e. Machike-Chak Pirana, Chak Pirana-rawat and Rwat-Tarujabba, aims at transportation of high speed diesel and motor spirit.
Secretary Ministry of National food Security & Research gave the meeting a detailed presentation on issues and challenges in the cotton sector. Experts in the field of cotton growing who were specially invited to the meeting also gave their input for developing the cotton crop. The ECC decided that Ministry of NFS&R will present, within 30 days, a plan for strengthening research and development services for different crops with particular focus on cotton. The Ministry will also submit plan for revitalization of federal institutions tasked with the responsibility of developing the cotton sector. ECC also directed Ministry of NFS&R to expedite efforts for implementing PB Ropes technology to counter the pink bollworm which impedes cotton growth. The meeting directed that Ministry of Industries and Production would take measures for recovery of cotton cess from textile mills so as to give impetus to cotton promotion activities, which are to be funded through the cess.
The Ministry of Maritime Affairs briefed the meeting about various concessions granted to the Gwadar Port and Gwadar Free Zone. ECC directed that BoI, Ministry of Planning, Ministry of Maritime Affairs, Law Division and FBR to review the proposals and revert to the Committee.
The Ministry of Maritime Affairs briefed the meeting with regard to the location of any new LNG terminals in the country as well as the assessment of requirement for relocation of the existing terminals. The Committee took note of the presentation and directed the relevant Ministries to work out the medium to long term requirement of LNG in the country and present the same to the Committee.
