ECC approves Rs17b financial package for PIA

The Economic Coordination Committee in a meeting on Monday approved a financial support package amounting to Rs17 billion for Pakistan International Airlines (PIA) – the country’s national flag carrier.

The meeting – chaired by Finance Minister Asad Umar – also gave a go-ahead to allocation of 10 million cubic feet per day (MMCFD) gas to Sui Southern Gas Company Limited and 12MMCFD gas to Sui Northern Gas Pipelines Limited from two gas fields, respectively.

On the other hand, PIA has been plagued by financial losses over the past years, and has relied on the government’s support at various times to continue operating. The airline accumulated losses of Rs356 billion with total liabilities amounting to Rs406 billion against assets of only Rs111 billion, it told the Supreme Court during a hearing of a suo motu case pertaining to its financial situation in June 2018.

ECC also decided to allocate 22 million cubic feet per day (MMCFD) gas from two gasfields into the systems of two gas companies. he ECC decided to allocate 10 million cubic feet per day (MMCFD) gas from the Bitrism gasfield to Sui Southern Gas Company Limited (SSGCL). Meanwhile, 12MMCFD gas has been allocated from the Dhok Hussain gasfield to Sui Northern Gas Pipelines Limited (SNGPL).

The ECC meeting decided to defer the decision on the Gas Load Management Plan for winter.

The Petroleum Ministry had earlier sent the summery of gas load management plan to the ECC for approval as complaints of low gas pressure and supply shortages have started to pour in.

The winter months from December to February, are expected to be tough for the urban dwellers due to shortfall of gas amid commitment by the new government to ensure uninterrupted gas supplies to the industrial sector.

The petroleum division has estimated up to 50pc gas shortfall to urban population in Punjab and to some extent in Khyber Pakhtunkhwa.