ISLAMABAD, April 27 – The Economic Coordination Committee (ECC) on Monday approved nearly Rs6 billion to support the settlement of liabilities of the national carrier, while also endorsing a series of policy measures aimed at stabilizing the economy, improving trade compliance, and strengthening governance.
The ECC, chaired by Finance Minister Muhammad Aurangzeb, reviewed a summary submitted by the Ministry of Defence and approved Rs5.985 billion in favor of PIA Holding Company Limited for the settlement of liabilities of Pakistan International Airlines Corporation Limited.
The approved funds will primarily be used to reimburse medical and pension payments and to ensure salary disbursements. However, the committee directed that payments related to the National Insurance Company Limited be taken up with relevant tax authorities for adjustment, in line with audit recommendations.
Trade reforms and compliance measures
In a move aligned with international commitments, the ECC approved amendments to the Import Policy Order (IPO), 2022 to introduce a prohibition on the import of goods produced through forced labour, in compliance with conventions of the International Labour Organization.
The committee also approved changes to the Import-Cum-Export Scheme and Export Facilitation Scheme, allowing temporary import of used vehicles and auto parts for repair, refurbishment, and re-export under a pilot project. The initiative will be reviewed after one year.
Additionally, the ECC gave the green light for the regulated disposal and export of donkey meat and hides from the Gwadar facility, subject to applicable export protocols and regulations.
Inflation shows signs of easing
The committee noted improving price stability and easing inflationary pressures, citing declining trends in key indices such as the Sensitive Price Index (SPI). Officials briefed that coordinated efforts between federal and provincial authorities, along with improved supply chain monitoring, have contributed to stabilizing prices of essential commodities.
Several food and household items have either recorded price reductions or only marginal increases in recent weeks, signaling broader moderation in inflation.
Additional approvals and fiscal support
The ECC also approved multiple Technical Supplementary Grants (TSGs) across ministries. These included Rs100 million for the Cannabis Control and Regulatory Authority, Rs311 million for the government of Balochistan to support administrative incentives, and Rs372 million for the National Accountability Bureau to enhance digital and AI-based systems.
A grant of Rs30 million was approved for the Pakistan national hockey team as a reward for qualifying for the FIH Hockey World Cup after eight years.
The ECC also referred a proposal related to Public Service Obligation agreements with power distribution companies to the Cabinet Committee on State-Owned Enterprises for further review.
The latest decisions reflect the government’s efforts to balance fiscal discipline with targeted support measures while advancing structural reforms to sustain economic stability.