ISLAMABAD --- The Economic Coordination Committee (ECC) of the Cabinet has approved the issuance of a certificate of sovereign guarantee for the sale of three JF-17 aircraft to Nigerian Air Force against a sum of $184.3 million, to support the declining foreign exchange reserves.
The Ministry of Defence Production had tabled a summary before the ECC which approved the issuance of a certificate of sovereign guarantee to show commitment for the provision of the aforementioned aircraft to Nigerian Air Force, in line with a contract signed between the two sides recently.
Officials familiar with the development told The Express Tribune that the Ministry of Defence Production informed the ECC that the Pakistan Aeronautical Complex (PAC) was continuing its role as Repair Overhaul Organisation (ROO) for technical operation support of the Pakistan Air Force (PAF).
The ministry further informed the economic decision-making committee that the PAC Kamra had signed a contract for the sale of three JF-17 aircraft and associated package to Nigerian Air Force.
According to Article 6.1 of the contract, PAC Kamra shall present the sovereign bank guarantee from the Government of Pakistan prior to the release of payment by Nigeria. No bank loan or credit financing is involved in this case, the ECC was told.
The ministry told the ECC that the Nigerian authorities had been informed that the Government of Pakistan would issue a certificate of sovereign guarantee rather than a certificate of sovereign bank guarantee, and the Nigerians had agreed to it.
The guarantee referred here is the surety from the Government of Pakistan that contracted products and related equipment would be provided to the purchaser by the PAC Kamra. A draft of the requisite guarantee acceptable to the purchaser is also required concurrently.
The Finance Division has no objection to the issuance of a certificate of sovereign guarantee subject to the approval by the ECC and completion of all codal formalities.