Rs 13.5 billion bailout package for PIA approved by ECC

A meeting of the Economic Coordination Committee (ECC) of the Cabinet approved a bailout out package of Rs 13.5 billion for Pakistan International Airlines (PIA). A meeting of the ECC presided over by Prime Minister Shahid Khaqan Abbasi decided to increase the commercial borrowing guarantee limit of PIA by Rs 13.585 billion. The decision was taken on a proposal of the Aviation Division seeking the government''s support for financially struggling national flag carrier.
To provide relief to the families of Shuhuda (martyrs), the ECC approved a proposal to include words "and Shuhuda Family Welfare Account" in clause (6) Part III and clause (36 A), Part IV of the Second Schedule to the Income Tax Ordinance 2001. The ECC approved a proposal that minimum guaranteed price for the wheat crop 2017-18 may be maintained at the previous year''s level ie Rs 1,300 per 40Kg.
The meeting also approved supply of 20,000 metric tons of wheat from PASSCO to the United Nations World Food Program for temporary dislocated persons of FATA. The proposal to allocate 14.8 MMscfd gas (up to 8.0 MMscfd gas from Aminah gas field and upto 6.8 MMscfd gas from Ayesha North field) to M/s SSGC was approved.
The ECC also granted exemption from rule 43 of 1986 rules for development and production leases over Sara and Suri gas fields.
Approval of field development plan and grant of development and production lease for Mubarak block No. 2769-4 and Gambat block No. 2668-4 was also accorded by the ECC. The ECC approved a proposal of the Petroleum Division that 83.2 MMscfd (ie up to 74 MMscfd gas from Shahdadpur, up-to 2.2 MMscfd gas from Shahdadpur East and up-to 7 MMscfd gas from Shadadpur West D&PL) be allocated/regularized to SSGCL as SSGC''s network already exists in the area and that gas from same block is already being supplied to the company.
The ECC also approved a proposal for construction of Machike-Tarujabba Oil Pipeline Project on BOT basis for the transportation of oil from Lahore to Peshawar. The construction of this pipeline would facilitate easy and inexpensive transportation of oil. The ECC also granted exemption from the provisions of Section 7B of the Income Tax Ordinance 2001 for recipients of profit on debt from Behbood Saving Certificates and Pensioners Benefit Accounts.