ECC rejects PIA's plea for payment deferral

September 07, 2023 (MLN): The Economic Coordination Committee (ECC) of the Cabinet on Wednesday rejected the request for deferment of the payments of Rs1.3 billion per month which PIA pays to FBR against FED and Rs0.7bn per month which PIA pays to CAA against embarking charges.

The ECC also discussed and reviewed the timelines and costs of the restructuring plan.  After detailed discussion and deliberation, it was decided to constitute a separate committee for the assessment of the restructuring plan of PIA.

It was also decided that the Finance Division and the State Bank of Pakistan will support PIA in tackling its financial challenges after a concrete plan of restructuring of PIA has been finalized and submitted to the satisfaction of the Committee. 

Ministry of Aviation submitted a summary regarding “Financial support for PIACL & its Restructuring”.

Lastly, the ECC approved a Technical Supplementary Grant worth Rs. 40 billion against various approved projects of Defense Services and for subsidies & miscellaneous expenditures during FY24.

 However, the amount will not be released at once, but on case to case basis only as it has already been budgeted for the current FY.

Caretaker Federal Minister for Finance, Revenue, Economic Affairs and Privatization Dr. Shamshad Akhtar chaired the said meeting.

Copyright Mettis Link News