ECC Recommends PIACL Restructuring Plan For Onward Submission Before Cabinet
Sumaira FH 9 days ago Wed 07th April 2021 | 11:19 PM
The Economic Coordination Committee (ECC) of the Cabinet on Wednesday recommended the restructuring plan of Pakistan International Airlines Corporation Limited (PIACL) for onward submission before the cabinet, after reconciliation of tax liability figures
ISLAMABAD, (UrduPoint / Pakistan Point News - 7th Apr, 2021 ):The Economic Coordination Committee (ECC) of the Cabinet on Wednesday recommended the restructuring plan of Pakistan International Airlines Corporation Limited (PIACL) for onward submission before the cabinet, after reconciliation of tax liability figures.
The committee, the meeting of which was chaired by Federal Minister for Finance, Revenue, Industries and Production, Muhammad Hammad Azhar, however directed to place a cap on future debt which PIACL could take against its improved balance sheet, once restructuring plan was implemented.
The Aviation Division had submitted a summary before the ECC regarding the PIACL restructuring, according to press statement issued by the finance ministry.
The adviser to the prime minister on institutional reforms and austerity 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 minimize losses and transform the PIACL into a financially viable entity.
It included human resource restructuring through voluntary separation scheme (VSS), hiring aviation experts, fleet modernization, routes rationalization, product development and revenue enhancement measures.
Meanwhile, 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 were decided to be closed immediately by the Cabinet Committee on Energy (CCOE).
After seeking detailed input from relevant stakeholders, the committee directed the Power Division to deliberate further and present options for cost optimization regarding pension liabilities.
The cabinet committee also approved various Technical Supplementary Grants including Rs330 million for the Ministry of Defence for the maintenance of aircrafts; 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 and Rs1 billion for the Finance Division to refund the balance amount of funds of Insaf Imdad Ehsas Programme.
It also approved Rs382.280 million for the Ministry of Energy for completion of development schemes of Sindh and Balochistan provinces under PSDP; 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).
Among others, the meeting was attended by Federal Minister for Planning, Development and Special Initiatives, Asad Umar, Federal Minister for Energy Omar, Ayub Khan, Federal Minister for Privatization Muhammad, Mian Soomro, Minister for National Food Security and Research, Syed Fakhar Imam, Advisor to the Prime Minister for Institutional Reforms and Austerity, Dr Ishrat Hussain, Advisor to the Prime Minister for Commerce, Abdul Razzak Dawood, SAPM on Power Tabish Gauhar, SAPM on Revenue, Dr Waqar Masood; federal secretaries; Governor State Bank of Pakistan Reza Baqir, BoI chairman and other senior officials.