The Cabinet Committee on Privatization (CCoP) on Monday approved the privatization of the Pakistan International Airlines (PIA), including it in a list of “active privatization projects.”
Chaired by Finance Minister Ishaq Dar, the meeting similarly approved the appointment of a finance adviser for the privatization of the Roosevelt Hotel in New York, which is owned by the national flag carrier.
Separately, the finance minister chaired a meeting of the Economic Coordination Committee (ECC) of the federal cabinet, approving the continuation of the prime minister’s relief package for five essential items on subsidized rates through Utility Stores Corporation from Aug. 1, 2023 till June 30, 2024. As part of this, it said, the prices of subsidized wheat flour would remain fixed and not face any increases.
During the meeting, the participants further approved changes to the incentives schemes of the State Bank of Pakistan (SBP) to improve the inflow of remittances through formal channels. The ECC also approved tariff rationalization for K-Electric through adjustments applicable on the consumption of electricity in April, May, and June. It decided that the adjustments would be recovered from consumers in July, August, and September, respectively.
According to a statement issued by the Finance Ministry, the cabinet body approved a summary moved by the Ministry of Energy (Power Division) regarding a contract with TAVNIR Iran for the purchase of 104MW electricity. The ECC approved amendments to the contract with TAVANIR related to extension of tariff for existing supply of 104MW (Jackigur-Mand) from Jan. 1, 2022 to Dec. 31, 2024, negotiating tariff for additional supply (Polan-Gabd) and tariff agreed for additional supply of 100MW through Polan-Gabd Transmission Line from March 16, 2023 to Dec. 31, 2024.
The meeting also approved a Rs. 3 billion technical supplementary grant for the Information Ministry to fund the Prime Minister’s Health Insurance Scheme for Media Workers, Journalists and Artists and Film Finance Fund. Another technical supplementary grant of Rs. 500 million was approved for the Defense Ministry for security-related requirements during fiscal year 2023-24.
The ECC also considered and noted a comprehensive report on damaged wheat of PASSCO due to rainfall and floods of 2022, and considered and approved a summary of the Ministry of Energy regarding proposed amendments in Transmission Line Policy 2015 for inclusion of ancillary services projects.
Federal Minister for Commerce Syed Naveed Qamar; Federal Minister for Power Khurram Dastgir Khan; Federal Minister for Information and Broadcasting Marriyum Aurangzeb; Federal Minister for Industries and Production Makhdoom Syed Murtaza Mehmood; Minister of State for Petroleum Musadik Malik; Special Assistant to the P.M. on Finance Tariq Bajwa; SAPM on Revenue Tariq Mehmood Pasha; Coordinator to the P.M. on Commerce and Industry Rana Ihsan Afzal; and federal secretaries and other relevant officers also attended the meeting.