ECC approves equity share of Pakistan in TAPI

Lahore: The ECC of the Cabinet, chaired by Finance Minister, Senator Muhammad Ishaq Dar on Friday, accorded approval to a proposal of the Ministry of Petroleum and Natural Resources for US$ 200 million equity share of Pakistan in the TAPI Gas Pipeline Project Company.

The ECC also approved release of US$ 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 authorization for ISGS to sign these agreements was also given by the ECC.

It may be mentioned that overall cost of TAPI project is US$ 10 billion. Turkeministan being the Consortium leader for the Project, has agreed to contribute 85% of equity.

On a proposal submitted by 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 Privatization Division for payment of two months salaries (Rs. 64 million) to the employees of Pakistan Machine Tool Factory (PMTF) Karachi.