ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has permitted the issuance of a certificate of sovereign guarantee for the sale of three JF-17 aircraft to Nigerian Air Force at a total amount of $184.3 million, in order to help the diminishing foreign exchange reserves.
The Ministry of Defence Production had tabled a summary before the ECC, which provides the approval for the issuance of a certificate of sovereign guarantee in order to confirm commitment for the provision of the aforementioned aircraft to Nigerian Air Force. Recently, a contract has also been inked between both the parties.
According to sources, officials informed that the Ministry of Defence Production notified ECC that the Pakistan Aeronautical Complex (PAC) was enduring its function as Repair Overhaul Organisation (ROO) for technical operation support of the Pakistan Air Force (PAF).
Furthermore, the ministry also declared the economic decision-making committee that the PAC Kamra had signed a contract for the sale of three JF-17 aircraft and had associated package to Nigerian Air Force.
According to Article 6.1 of the contract signed, PAC Kamra shall provide the sovereign bank guarantee from the Government of Pakistan preceding to the release of payment by Nigeria. However, no bank loan or credit financing is allowed in such contract.
It is to be mentioned here that the Nigerian authorities are already informed that the Government of Pakistan would issue a certificate of sovereign guarantee instead of a certificate of sovereign bank guarantee, to which the Nigerians had agreed upon.
Here, the guarantee is termed as an indemnity from the Government of Pakistan that contracted goods and related equipment would be provided to the procurer by the PAC Kamra.
However, the Finance department has no objection, in the issuance of a certificate of sovereign guarantee subject to the consent by the ECC and completion of all official procedure.
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