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ECC Approves Cash Support for PIA to Offset Pandemic-linked Losses

Federal Minister for Finance and Revenue, Mr. Shaukat Tarin, presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet held at the Finance Division today.

The ECC considered and approved a summary tabled by the Aviation Division for GOP cash support as required by PIAC. The airline has experienced a significant dip in revenues and cash flows due to the pandemic and unprecedented travel bans/lockdowns imposed by various countries.

The ECC also approved the enhancement of the existing approved guarantee enabling PIAC to overcome its financial challenges.

Ministry of Industries and Production presented a summary requesting for the provision of RLNG to SNGPL based plants (Agritech and Fatima Fertilizer) during Rabi season 2021-22. The ECC approved the provision of 70 MMG RLNG with the direction to hold a consultative session with the representatives of fertilizer manufacturers to work out the overall demand for urea in the country. The ECC was further directed to consider the possibility to import urea (if needed) to maintain buffer stocks.

The ECC approved Rs. 3860 million in favor of the Revenue Division (FBR) as a bridge financing facility to upgrade IT infrastructure in view of increased frequency and severity of cyberattacks to ensure elimination of risk to taxpayers data.

Ministry of Commerce presented a summary regarding the revocation of the conditions of Minimum Export Price (MEP) on the export of surgical instruments with the exception of “single-use” surgical instruments. After due deliberation, the ECC approved that the necessary amendments be made in Export Policy Order, 2020, to revoke the condition of MEP in order to make our exports competitive in the global market.

Ministry of National Food Security and Research submitted a summary before the forum for the provision of wheat to AJ&K, out of PASSCO stock, for the financial year 2021-22. The ECC approved the provision of 300,000 MT of wheat (in total) to AJ&K at the ratio of 80/20 as a mixture of local/imported stock.

Federal Finance Minister, as a Chairman of ECC, stated that the Government is firmly committed to stabilize prices of wheat and ensure its smooth supply at affordable prices across the country

Among others, Federal Minister for Planning Asad Umar, Federal Minister for National Food Security & Research (NFS&R) Syed Fakhar Imam, Federal Minister for Energy Hammad Azhar, Federal Minister for Maritime Affairs Syed Ali Zaidi, Federal Minister for Industries and Production Khusro Bakhtiar, Adviser on Commerce Abdul Razak Dawood, MOS on Information Farrukh Habib, SAPM on Power and Petroleum Tabish Gauhar, Federal Secretaries, Chairman FBR, Deputy Chairman Planning and other senior officers participated in the meeting. Governor SBP Dr. Reza Baqir also participated through a video link.

Source: Pro Pakistani