In Islamabad, the Economic Coordination Committee (ECC) has granted approval for a technical supplementary budget of 40 billion rupees for defense expenditures. The meeting, presided over by interim Federal Finance Minister Dr. Shamshad Akhtar, addressed a three-point agenda.
During the meeting, a decision was made to establish a subcommittee to address the financial needs of restructuring Pakistan International Airlines Company Limited. Additionally, a proposal to defer payments amounting to Rs. 1.30 crore per month to the Federal Board of Revenue (FBR) and Rs. 70 crore per month to the Civil Aviation Authority was rejected. The ECC stated that financial support from the Finance Division and the State Bank would be provided once a robust plan for PIA’s restructuring is developed.
Furthermore, the Ministry of Defense received approval for technical supplementary grants for various defense projects in the fiscal year 2023-24.
The ECC also greenlit an increase in margins for oil marketing companies and dealers. The petroleum dealer’s margin will rise to Rs. 164 paise per liter, with increments of 41 paise per liter every two weeks starting from September 15.
Moreover, the ECC approved an increase in the margin of oil marketing companies by Rs. 1.87 paise per liter, also to take effect in four stages starting on September 15.
In a separate meeting of the Cabinet’s Privatization Committee, chaired by interim Finance Minister Shamshad Akhtar, the Secretary of the Privatization Commission provided a comprehensive overview of the ongoing privatization efforts. The meeting included a briefing on ten entities, including the financially challenged Heavy Electrical Complex, Service, International Hotel, Pakistan Steel Mills, HBFDL, Roosevelt Hotel in New York, PIA, and RLNG Power Plants.
The interim Finance Minister emphasized the need to expedite the privatization of struggling institutions. A technical committee was established to address obstacles related to PIA’s privatization and restructuring. The Ministry of Aviation was instructed to collaborate with the Privatization Commission to present a detailed action plan with clear timelines. Additionally, a committee was formed to devise a viable plan for involving the private sector in the management of Distribution Companies (DISCOs), led by the interim Energy Minister and including the Secretary of the Privatization Commission, Special Secretary of Finance, and members of Nepra.