ECC okays PIAHCL funding for pension, medical costs

December 09, 2025 (MLN): The Economic Coordination Committee (ECC) has granted in-principle approval for the release of budgetary allocations to PIA Holding Company Ltd. (PIAHCL) to meet pension and medical expenses of the employees of Pakistan International Airlines Corporation Ltd. (PIACL).

The Finance Division stated that the allocation will support the holding company in fulfilling essential employee-related obligations as the airline transitions through restructuring.

Meanwhile, the ECC approved several other financial and administrative proposals.

This includes a Technical Supplementary Grant (TSG) of PKR 1.28 billion for the Pakistan Digital Authority (PDA) to accelerate digital transformation across government departments.

The Committee also approved the release of TSG-related funds for the development expenditure of the Cabinet Division for FY 2025–26, based on requests from the Interior and Narcotics Control Division.

Allocation of Rs5 billion to the Housing and Works Division as a Technical Supplementary Grant was also allowed. 

The Committee also approved the establishment of a special-purpose company to wind up PASSCO, settle outstanding liabilities, manage regulatory exemptions, and oversee eventual dissolution once the mandate is completed.

Earlier in the meeting, the ECC reviewed the Circular Debt Management Plan for FY 2025–26 and instructed the Power Division to prepare a medium-term strategy for reducing fiscal support while creating a follow-up mechanism with DISCOs.

The session was attended by the Petroleum, Power, and Investment Board ministers, along with senior officials of key ministries and regulatory bodies.

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