ISLAMABAD: Presided over by Finance Minister Asad Umar, The Economic Coordination Committee (ECC) of the Cabinet on Wednesday, 20 March froze Rs96bn worth of liabilities of Pakistan International Airlines (PIA) payable to the Civil Aviation Authority (CAA) and approved a $3 million supplementary grant for maintenance of an aircraft for the prime minister.
The Government allowed state-owned ailing Pakistan International Airlines (PIA) to temporarily hold up around Rs96 billion in payments the airline owe to the Civil Aviation Authority (CAA) on account of aeronautical charges and other levies, sources said on Wednesday.
PIA’s Chief Executive Officer Arshad Malik earlier asked the government to give the airline a relief from payment of Rs95 billion and late penalty to the CAA till the loss-making PIA comes out of its dire financial straits.
The ECC was presented a troubled financial position of the PIA as usual. Informed sources said the government had already exceeded its guarantee limits for the current year and hence decided to freeze these liabilities along with late payment penalty until June 30.
A financial rescue package for PIA would be prepared in the meantime so as to enable the federal government, if required, to inject budgetary support or issue fresh guarantees for loans rollovers with the start of the next fiscal year.