ISLAMABAD, Aug 5: The Economic Coordination Committee of the Cabinet (ECC) was informed here on Monday that Pakistan International Airlines (PIA) has earned a profit of Rs1 billion between January and August 2002.

The meeting, which was presided over by Minister for Finance Shaukat Aziz, expressed satisfaction over PIA’s performance.

The chairman PIA informed the meeting of its plans to replace its aircraft fleet by the year 2010.

The replacement strategy would also include maximizing uniformity in the type of aircraft for operational efficiency.

A business plan with fleet purchase recommendation was being processed and will be reviewed by the PIA board within four weeks. After which it would be submitted to the federal government for approval.

The PIA chairman also told the ECC that the PIA had completed the acquisition of six 747-300 used aircraft from Cathy Pacific Airlines.

Regarding the aviation policy, the chairman PIA, who is also chairman Civil Aviation Authority (CAA), said that the government wanted to encourage an open policy by providing a level playing field to all carriers.

Reciprocity and code-sharing will be encouraged so that an equitable air traffic market was developed and the utilization of Karachi and Lahore airports where capacity existed, was further utilized.

The ECC decided to extend the current GOP guarantees of PIA until June 30, 2003.

It also extended all over bridge financing facilities of Rs4.7 billion to the PIA until June 2003.

Extension of this facility would enable the PIA to service short-term debts and improve cash flows.

KESC: The ECC also approved raising of loans of Rs8 billion through the issuance of treasury bills to enable the KESC to clear Wapda’s dues. In turn, Wapda would right off the balance amount of financial charges.

This would be treated as full and final settlement of Wapda’s arrears against the KESC as of end of June 2001. The KESC has already cleared Wapda’s power supply bills for the financial year 2001-2002.

It may be mentioned that huge payment to the IPPs, outstanding payment against the KESC and an increase in the international fuel prices have impacted Wapda’s financial sources.

This measure would help Wapda’s liquidity to improve its performance and relax the federal government’s subsidy to reduce electricity tariff for the consumers.

Secretary Petroleum, Abdullah Yousef, informed the ECC that the supply of gas for power generation has increased by about 20 per cent and will grow even further in the next 24 months due to supplies from Zamzama and Miano Fields to be followed by Bhit, Zamzam-II and Swan Gas Fields.