Government to allow another bailout package worth Rs13 billion to PIA

ISLAMABAD: The government is set to allow another bailout package worth Rs13 billion to the embattled national flag carrier, and will allocate around Rs230bn for the procurement of more than seven million tonnes of wheat during the current season.

Sources told Dawn that a meeting of the Economic Coordination Committee (ECC) of the cabinet being called this week will also approve special honoraria for officers working on Sustainable Development Goals (SDGs), besides allowing four-month salaries to employees of the fledgling Pakistan Steel Mills (PSM).

In addition, the ECC is expected to approve income tax exemptions on a few national savings instruments. Sources said the relevant ministries and members had been notified of the ECC meeting, which will be held soon after Prime Minister Shahid Khaqan Abbasi returns from London.

Pakistan International Airlines (PIA) is a chronic recipient of bailouts in the form of capital injections from the budget or commercial loans from banks against the government’s sovereign guarantees due to its continuous losses.

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