ECC Freezes Rs. 96 Billion of PIA’s Liabilities Payable to CAA

The Economic Coordination Committee (ECC) has frozen Rs. 96 billion worth of liabilities of Pakistan International Airlines (PIA) payable to the Civil Aviation Authority (CAA).

ECC took this decision in a meeting held on Wednesday. The committee also approved a supplementary grant worth $3 million for the maintenance of an aircraft for the Prime Minister.

The meeting was apprised that PIA owes Rs. 96 billion to CAA. The government has already exceeded its guarantee limits for the current year, therefore, it decided to freeze the airline’s liabilities and imposed a late payment penalty.

Not only this but the committee also approved Rs. 17 billion worth of supplementary grants. It also decided to pay Hydel Net Profit to Azad Jammu and Kashmir (AJK), as the provinces receive the payment of dues on hydropower generation.


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With Finance Minister Asad Umar in the chair, the ECC was presented with a proposed arrangement for settlement of electricity tariff and water usage charges issues with the AJK by the Water Resource Division.

Secretary Water Resource Division told the committee that an extensive arrangement covering all aspects of the issues have been prepared in consultation with the AJK government. Under the new arrangement, AJK will receive the allowance similar to the other provinces.

Federal and AJK governments will formally sign an agreement over the next few days under which the AJK administration would establish its own distribution company (Disco) on the pattern of 10 other Discos working in the provinces.

This Disco will also be charged a bulk tariff at Rs. 6 per unit like K-Electric by the Central Power Purchasing Agency (CPPA).

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