Contract of new Islamabad airport: Akbar to brief cabinet about illegalities & irregularities

Special Assistant to the Prime Minister (SAPM) on Accountability, Shahzad Akbar will share details of illegalities & irregularities committed in award of contract for construction of New Islamabad International Airport in the next federal cabinet meeting, well informed sources told Business Recorder. The cabinet in its meeting held on March 26, 2019 gave these instructions to SAPM on Accountability during discussion on National Aviation Policy 2019.
Aviation Division informed the cabinet that the National Aviation Policy (NAP) was earlier launched in 2015 with a view to bring healthy changes to the aviation sector in Pakistan. However, due to several reasons the policy could not trigger the desired positive changes. During a presentation given by the Pakistan International Airlines on January 1, 2019, Prime Minister gave following directions: (i) National Aviation Policy be reviewed critically and comprehensively to support aviation and airline industry and recommendations be put up by February, 2019; (ii) the high rate of charges levied by PCAA facilities need review and rationalisation for the comfort of doing business in the aviation industry; and (iii) open skies clauses and associated air services agreements of the National Aviation Policy including routes, slots and capacity accorded to foreign airlines which have been discriminatory and disadvantageous to the National Flag Carrier, be reviewed on urgent basis.
The cabinet was briefed that in pursuance of the Prime Minister directives, a draft National Aviation Policy, 2019 had been formulated. A presentation was given to the Prime Minister on March 14, 2019 on the draft NAP, 2019. During the presentation, the inadequacies of NAP 2015 were highlighted including the very high cost of doing business, high paid up capital and security deposit requirements, stringent aircraft age/life requirements, unfavourable land lease/recent policy and high charges levied by the Pakistan Civil Aviation Authority (PCAA) and Federal Board of Revenue (FBR), which together contributed towards downfall of the aviation sector in the country.
It was revealed that while drafting the National Aviation Policy, 2019, Aviation Division had incorporated inputs and feedback from all stakeholders to draft a policy which is encompassing and forward looking.
In line with the directions by the Prime Minister, the draft policy had incorporated rationalised PCAA charges and facilitated the aviation sector on the whole in Pakistan in the domestic sector. Moreover, it had also recommended taking up the issue of quite high federal taxes and duties, with the federal government for rationalisation.
The draft policy aimed at ensuring growth of aviation business in Pakistan and creating new business opportunities with a widening base, which in turn would increase revenue and attract direct and indirect investments, along with job opportunities. Another important aspect which has been catered for is to safeguard the interest of national and other domestic carriers against unhealthy competition while at the same time, providing incentive to international carriers to make Pakistan a dream destination.
The cabinet was further informed that the draft policy had included an entirely new class of licence namely Tourism Promotion and Regional Integration (TPRI). The operators will be able to fly to socio-economic routes which also include travelling to some of the best tourist destinations in the country and also promote religious tourism. In line with the resolve of the government to make Pakistan a tourism destination, the TPRI initiative is likely to bear fruit in a short period of time.
It was also stated that another important point was the economic oversight committee headed by Secretary Aviation which would meet regularly, with a view to redress the issues faced by the stakeholders. The role of PCAA as a regulator shall be made independent of service provider with financial and administrative autonomy within a period of two years. By setting up a Regulatory Cell, organisational change modalities and structure of the regulator would be achieved with minimal adverse collateral disadvantage.
The cabinet was also briefed about the salient features of the draft NAP, 2019 which are as follows: (i) reduction in cost of doing business; (ii) ease of doing business; (iii) revised parameters for aircraft age and life; (iv) rationalised charges for non-operational aircrafts; (v) tourism promotion including religious tourism and regional integration; (vi) review of Air Services Agreements (ASAs) and other open skies policy; (vii) renegotiation of AFAs; (viii) setting up of aviation cities/clusters & aerospace research parks including AMOs/MROs; (viii) rationalisation of PCAA and FBR charges; (ix) review of land lease/rent policy; and (x) establishment of cargo villages at selected airports for promotion of exports.
During discussion, it was emphasised that there is a need to separate regulatory functions from operational functions and CAA should be placed in Cabinet Division instead of housing it in Aviation Division. It was also observed to develop the aviation sector on modern lines for which there is a need to consult aviation experts of global repute with regard to effectiveness of the policy.
It was observed that progress on the two inquires regarding various complaints about Islamabad International Airport (IIA) and the landing of a PIA aircraft in Germany have been pending for over more than three months, which needs to be expedited by the Aviation Division.
After detailed discussion, the cabinet approved the National Aviation Policy 2019 and decided that Aviation Division will develop an independent regulatory structure for aviation industry and present it to the cabinet for consideration in one month.
The cabinet also directed Special Assistant to Prime Minister on Accountability to submit a report on illegalities/ irregularities committed in award of contract for construction of New Islamabad International Airport in the next cabinet meeting. The mission statement will also include the word "profitability".