Home Business ECC okays to lay off 3500 PIA’s employees through VSS

ECC okays to lay off 3500 PIA’s employees through VSS

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VSS

PIA had sought cash support of Rs 12.871 billion to lay off 3500 employees through a VSS

Economic Coordination Committee (ECC) decided to approve, in principle, to lay off 3500 employees of PIA under the voluntary separation scheme (VSS).

Finance Advisor Dr. Abdul Hafeez Sheikh chaired the Economic Coordination Committee (ECC) meeting of the Cabinet.

Aviation Division presented a summary regarding GoP cash support for the VSS. After a thorough discussion, ECC decided to approve, in principle, the voluntary separation from the service scheme for PIA.

PIA had sought cash support of Rs 12.871 billion to lay off 3500 employees through a VSS.

In a meeting held in the Prime Minister’s Office on the Strategic Business Plan of PLACL on April 4, 019 the, PIA had presented Liquidity requirements for Markup and VSS.

PM office had approved in principle. It directed the Finance Division directed for further necessary action. Aviation Division had moved a summary for the ECC of the Cabinet accordingly.

Read More: Secretary Aviation sacrifying CAA & PIA to bring out other airlines from bankruptcy

It also formed a committee on the manufacturing of mobile SIMs and Smart-cards in Pakistan. IT ministry presented a proposal regarding the manufacturing of SIMs/Smart-cards in Pakistan.

ECC formed a Committee to examine a proposal and will submit  within two weeks. Industries minister would chair it. It will comprise representatives from the Ministry of IT & Telecom., FBR, and Board of Investment (BOI).

Investors had shown keen interest in setting manufacturing plants of SIMs and smart cards in Pakistan. However, they were seeking tax incentives to set up plants in the country. They ask for exemptions of taxes on materials which they would use to manufacture SIMs and smart cards.

Officials said a committee had recommended a tax break for the SIMs and smart manufacturers to set up plants. The incentives would help attract local as well as foreign investors. Officials say that they would not only attract investment but create jobs for locals.

They also say that this step would also help ensure the security of Pakistan. It was basically a security measure to counter cyber-attacks in Pakistan.

In summary, it said that the government was working on digital transformation and creating an eco-system. So, it planned to enter into the ear of manufacturing digital SIMs and smart cards.

Experts say that it would help boost the local economy and would create jobs for locals.IT would ease the burden on foreign reserves due to local manufacturing.

ECC approved Rs 53 million budgetary allocations for  NITB top provide  ICT services at the Prime Minister’s Office for Prime Minister’s Kamyab Jawan Programme for FY/2020-21. Ministry of Information Technology and Telecommunication had requested for it.

Likewise, ECC formed a committee to decide a timeline for the export of Mango and Kinnow after due consultation with the stakeholders.

ECC gave concurrence to the Petroleum Division’s proposal, in principle, regarding the allocation of gas from Bashar X-IST to a third party up to 1.0 MMCFD.

ECC also approved four separate Technical Supplementary Grants for the Ministry of Defence and Ministry of Interior for various projects during the current FY 2020-21.