A meeting of the Economic Coordination Committee (ECC) of the Cabinet, chaired by Finance Minister Senator Mohammad Ishaq Dar on Friday, accorded approval to a proposal of the Ministry of Petroleum and Natural Resources for $200 million equity share of Pakistan in the TAPI Gas Pipeline Project Company.
The ECC also approved release of $12 million out of this share for the preliminary works in four equal tranches starting from January 2016 as per the disbursement plan. Approval for draft shareholders agreement, investment agreements and authorisation for ISGS to sign these agreements was also given by the ECC.
The overall cost of TAPI project is $10 billion. Turkeministan being the Consortium leader for the Project, has agreed to contribute 85 per cent of equity.
On a proposal submitted by the Aviation Division, the ECC granted approval for guarantee support of Rs 4.4 billion for PIA enabling the airline to improve its products and services.
The ECC also approved a proposal by Privatisation Division for payment of two months of salaries (Rs 64 million) to the employees of Pakistan Machine Tool Factory (PMTF), Karachi.