ECC APPROVES LEASING OF FIVE A320 AIRCRAFTS FOR PIA

The meeting of the  Economic Coordination Committee (ECC) of the Cabinet was held at the Prime Minister’s Office under the chairmanship of Federal Minister for Finance Senator Mohammad Ishaq Dar here this morning.

 The ECC approved the lease of five A320 aircrafts from the ten A319/320 aircrafts shortlisted on merit based on their combined score tabulated on their financial and technical parameters. The remaining five aircrafts were rejected because of their low combined score.

The ECC approved the dry lease of five A320 aircrafts with the direction that the lease period of the present aircrafts hired on wet lease may be extended so that a pool of at least ten aircrafts be maintained for convenience of general public and passengers.  The ECC also authorized PIA to initiate bidding for tender of additional five aircrafts which may be inducted by June 15, 2014.

The Finance Minister observed that the finalization of this lease by Pakistan International Airlines will not only rehabilitate its international credibility but also improve its image.

The Secretary Aviation informed ECC that due to earlier approval of ECC in its meeting of 12 July, 2013 and release of Rs.12.7 billion, PIA was able to add six additional aircrafts which raised the number of operational aircrafts from 20 to 26. This, he said had increased schedule integrity (in time) and no complaints of delay was reported during Hajj operations which was smooth after many years.

The Secretary Aviation also informed ECC that the loss of PIA had reduced from Rs.3.3 billion to Rs.1.5 billion last month.

The PIA management stated that the improvement in the performance, service and financial health of PIA was a result of the regular financial support and continued oversight by the present government.

The ECC approved providing guarantees to Exim Bank of USA and Islamic Corporation of Insurance and Export Credit (ICIEC) for providing financing for servicing and repairs of nine bowing 777 aircrafts which are the main stay of PIAC fleet subject to approval of financing terms by the Finance Division.

The Finance Minister observed that generally Exim Bank does not provide loans for repairs and maintenance and this reflects the confidence of the international institutions in the economic policies of the present government.

The ECC also approved extension of validity of existing guarantees for PIA by the Government of Pakistan for term loans of Rs.33.50 billion until 30th June 2014. The ECC directed that these term loans be converted into new term finance certificates (TFC) at the earliest in order to retire the said guarantees.

The ECC expressed concern over reports in the Media regarding increase in the prices of essential commodities.

The ECC directed the provincial governments to further strengthen monitoring of prices and check hoarding and profiteering.  The ECC expressed the hope that the provinces shall share information and follow best practices to provide relief to the common man in maintaining fair prices of essential commodities.

Work on the revival of Executive Magistracy may be expedited by the  committee already constituted for the purpose so that a more effective check can be made against profiteers and hoarder, observed the ECC.