The Economic Co-ordination Committee (ECC) of the Cabinet has approved a proposal of the Ministry of Petroleum and Natural Resources for US $200 million equity share of Pakistan in the TAPI gas pipeline project. The ECC meeting presided over by Finance Minister Ishaq Dar on Friday took up this proposal by Ministry of Petroleum for approval of $200 million equity share of Pakistan in the recently-inaugurated multi billion dollars Turkmenistan Afghanistan Pakistan India (TAPI) gas pipeline project.

The ECC also approved the 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 authorisation for ISGS to sign these agreements was also given by the ECC. The overall cost of TAPI project is US $10 billion and Turkmenistan being the consortium leader for the project has agreed to contribute 85% of equity.

The ECC also approved a proposal of Aviation Division for providing a guarantee support of Rs 4.4 billion for Pakistan International Airlines (PIA) enabling the airline to improve its products and services. The ECC also approved a proposal by Privatisation Division for payment of two months'' salary of Rs 64 million to the employees of Pakistan Machine Tool Factory (PMTF) Karachi.

Copyright Business Recorder, 2015