ISLAMABAD   -  Economic Coordination Committee of the Cabinet Monday approved another bailout package of Rs17.022 billion for the loss-making Pakistan International Airlines Corp. to reduce its financial constraints.

The ECC meeting, which was chaired by Finance Minister Asad Umar, approved the bailout package for the national flag carrier. The government had recently delisted PIA from the privatisation list.

Sources said the government wanted to restructure the PIA before considering its privatisation. PIA operational debt and liabilities have surged to Rs400 billion, including bank loans. The national airline is suffering Rs2 billion operational losses every month following recent hike in oil prices and depreciation of rupees against the US dollar.

Chairman PIA briefed the ECC about current operational and financial position of the organisation. The ECC directed the management to improve the business model of the company and to devise a strategic plan for solution to its financial and administrative problems on long term basis. The ECC approved the proposal for issuance of government guarantees of raising Rs17.022 billion for immediate requirements of the PIA. 

The Secretary Petroleum Division briefed the ECC about the gas supply situation on SSGCL network. The ECC was informed that the supply of gas to zero rated industry (process + captive) under SSGCL system, covering Sindh and Balochistan provinces would continue during the winter season, in accordance with recently approved gas supply priority for this sector.

The ECC directed SSGCL management to withdraw gas load management notices issued to these industries. Also, there will be no gas load management for domestic consumers.  The ECC considered and approved the proposal of the Ministry of Energy (Power Division), for raising fresh financing of Rs35.806 billion through a syndicate of banks for PHPL.

Secretary Ministry of Maritime Affairs briefed the meeting regarding the working of the LNG terminals at Port Qasim and the associated administrative and financial issues. The ECC directed that the ministries of Maritime Affairs and Petroleum should work closely to assess the requirements for setting up of new gas terminals and other necessary details in this regard. On another proposal of the Ministry of Energy (Petroleum Division), the ECC approved provision of 12 MMCFD gas to SNGPL from Dhok Hussain gas field. The ECC also approved to allocate 10 MMCFD gas from Bitrism field to Sui Southern Gas Company Limited (SSGCL). Bitrism field is located in Sanghar, Sindh.

The field is being operated by Oil and Gas Development Company Limited (OGDCL) as a joint venture with Government Holdings (Pvt.) Limited (GHPL) comprising 77.5% share of OGDCL and 22.5% share of GHPL. The OGDCL had requested to allocate 10 MMCFD gas from Bitrism discovery to Sui Southern Gas Company Limited (SSGCL) under commercial arrangements.