Daily Times

The Economic Coordination Committee (ECC) of the cabinet on Wednesday approved the restructuring plan of the Pakistan International Airlines Corporation Ltd (PIACL).

Federal Minister for Finance Hammad Azhar chaired the ECC meeting.

The Aviation Division submitted a summary before the ECC regarding the restructuring plan of the PIACL. Adviser to the PM for Institutional Reforms and Austerity Dr Ishrat Hussain made a detailed presentation on human resource and operational restructuring of the PIACL.

He drew attention to the various options for restructuring and outlined measures to minimise losses and transform PIACL into a financially viable entity. It included human resource restructuring through Voluntary Separation Scheme (VSS), hiring aviation experts, fleet modernisation, routes rationalisation, product development and revenue enhancement measures.

After detailed consultation, the ECC recommended the restructuring plan of PIACL for onward submission before the cabinet, after reconciliation of tax liability figures, with a direction to place a cap on future debt which PIACL could take against its improved balance sheet, once restructuring plan is implemented.

The Power Division presented a summary for a one-time grant to GENCOs for onward payment to DISCOs regarding the actuarial value of pension and pensionary benefits of surplus employees and also taking over the liability for payment of pension to existing pensioners of power plants which are decided to be closed immediately by the Cabinet Committee on Energy (CCOE).

After seeking detailed input from relevant stakeholders, the ECC directed the Power Division to deliberate further and present options for cost optimisation regarding pension liabilities.

The ECC also approved some technical supplementary grants including: Rs330 million for the Ministry of Defence for the maintenance of aircraft; Rs2,382 million for the Ministry of Federal Education and Professional Training for the Prime Minister’s Special Package to implement “Skill for All” strategy for TVET sector; Rs1 billion for the Finance Division to refund the balance amount of funds of Insaf Imdad Ehsas Programme; and Rs382.280 million for the Ministry of Energy for completion of development schemes of Sindh and Balochistan provinces under PSDP.

Other technical supplementary grants approved by the ECC included: Rs150 million for the Ministry of Housing and Works for funding civil works on different schemes in Balochistan under PSDP; Rs30 million for the Board of Investment for different operational expenses; and Rs280 million for the Ministry of Information Technology and Telecommunications for consultancy and implementation of Internet voting (I-voting).

The meeting was also attended by Planning Minister Asad Umar, Minister for Energy Omar Ayub Khan, Privatisation Minister Muhammad Mian Soomro, Minister for National Food Security and Research Syed Fakhar Imam, Advisor to the PM on Commerce Abdul Razak Dawood, SAPM on Power Tabish Gauhar, SAPM on Revenue Dr Waqar Masood, federal secretaries, Governor State Bank of Pakistan Reza Baqir, Chairman Board of Investment (BOI) and other senior officials.