ECC recommends PIACL restructuring plan for submission to cabinet

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Staff Reporter
Islamabad

The Economic Coordination Committee (ECC), Wednesday, recommended the restructuring plan of Pakistan International Airlines Corporation Ltd (PIACL) for onward submission before the Cabinet.

After reconciliation of tax liability figures, with a direction to place a cap on future debt which PIACL could take against its improved balance sheet, once restructuring plan is implemented.

ECC met here with Federal Minister for Finance, Revenue, Industries and Production, Muhammad Hammad Azhar in the chair and directed the Power Division to deliberate further and present options for cost optimization regarding pension liabilities.

This direction was in response to a summary moved by the Power Division 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 are decided to be closed immediately by the Cabinet Committee on Energy (CCOE).

Earlier, the Aviation Division submitted a summary before the ECC regarding restructuring plan of the Pakistan International Airlines Corporation Ltd (PIACL).

The Adviser to the Prime Minister for 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 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.

ECC also approved a number Technical Supplementary Grants for different divisions and ministries including Rs.330 million for the Ministry of Defence for the maintenance of aircrafts.

Rs.2382 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.