The Economic Coordination Committee (ECC) held a meeting today with Finance Minister Asad Umar as the chairman.
The meeting has approved an additional guarantee of Rs. 5.6 billion for Pakistan International Airlines (PIA). The airline will utilize the funds for maintenance of engines and procurement of spare parts.
The ECC also approved measures for enhancing cotton production during the current Kharif season. It was decided to collaborate with China to increase the cotton yield and focus on research and development.
For the past few years, the PIA has become troublesome for the government. Despite borrowing from the government continuously, the national flag carrier has failed to produce the desired results. The public entity is running on loss and thus, becoming a liability to the national exchequer.
The government, however, is still trying to turn around the situation. Funds are being allocated for this purpose, but no improvement has been seen yet.
On January 1st, the PIA chief gave a presentation to the Prime Minister on a plan to revive PIA. The PM approved several short-term measures in this regard. However, PIA needs more money to act upon these measures.