ECC approves Rs8 billion bailout package for PIA

ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet on Friday approved Rs8 billion funding for Pakistan International Airlines Corporation Limited (PIACL) through the Civil Aviation Authority (CAA).

The funding was approved by the ECC during a meeting chaired by Caretaker Federal Minister for Finance, Revenue, and Economic Affairs Dr Shamshad Akhtar.

The primary agenda for the meeting was a proposal submitted by the Aviation Division. This proposal sought financial support for PIACL through the Civil Aviation Authority (CAA). The funding was intended to address critical and immediate financial needs of the national airline.

After a thorough and extensive discussion, the ECC made the decision to approve the Aviation Division’s proposal for bridge financing. This financing, amounting to Rs8 billion, will be provided through the resources of the CAA to assist PIA in meeting urgent financial requirements, particularly related to outstanding payments.

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The ECC has granted permission for the Aviation Division to proceed with the bilateral arrangement between the CAA and PIA.

Caretaker Minister for Privatization Fawad Hassan Fawad, Caretaker Minister for Planning and Development Sami Saeed, Caretaker Adviser to the Prime Minister on Aviation Air Marshal Farhat Hussain Khan, federal secretaries and senior officials from relevant ministries also attended the meeting.