ISLAMABAD: The government is likely to lease out Qasr-e-Naz Karachi and Chamba House, Lahore for thirty years, sources in Ministry of Housing and Works told Business Recorder.
As per the guidance of the government, different properties across the country are being identified to generate non-tax revenue. Ministry of Housing and Works is maintaining touring lodges in different parts of the country to provide accommodation for the officers/officials of federal and provincial governments when they are on an official visit. These lodges are located on prime locations on highly valuable land, particularly Qasr-e-Naz in Karachi and Chamba House in Lahore. Over the years, infrastructure of these lodges have deteriorated due to lack of maintenance funds. Revenue from these lodges has also gone down due to lack of interest of touring officers because of poor quality of fittings and fixtures.
The Ministry of Housing and Works has informed the Cabinet that during the period 2016-2020, Qasr-e-Naz Karachi incurred a financial loss of Rs 111,210,080 as total receipts stood at Rs 41,118,644 against expenditure of Rs 152,328,724.
Qasr-e-Naz is situated in Karachi with a total area of Rs 2.6 acres with built up area of 0.92 acres and open area of 1.68 acres. The built up area consists of 64 single rooms and 37 family suites which are fully operational and are being used for government touring officers and Parliamentarians.
Likewise for the period 2016-2020, Chamba House, Lahore, inflicted on the national exchequer financial loss of Rs 40,423, 820 as total receipts stood at Rs 37,467,741 against an expenditure of Rs 77.891,561.
Chamba House has a total area of 58 Kanals and 08 Marlas. Its built-up area is 8 Kanals and 14 Marlas. It presently has 64 single rooms and 08 family suites which are fully operational.
In order to put these facilities to an optimum use and to generate revenue, Ministry of Housing and Works has proposed to lease out Qasr-e-Naz and Chamba House for a period of 30 years through a competitive bidding process with equity: 5 per cent-10 per cent. The leasing would include permission for upgradation of the existing infrastructure and construction of additional facilities to attract clients. The private parties will give a share annually from the gross revenue/receipt as per equity. At the end of the lease period the government properties will be returned to the employer in a properly maintained and operational condition at no cost to the employer. Leasing payment will increase annually at the rate of 10 per cent. The private parties will be bound to accommodate touring government officers on priority basis and the rent will be charged as per their respective ceiling fixed by the government.
According to Ministry of Housing and Works, it has been ensured that the heritage component of the buildings would be preserved/ intact without any alteration. Request for Proposals (RFPs) for leasing the properties have been developed.
The Ministry of Housing and Works has sought Federal Government's approval to invite national and international bids for leasing out Qasr-e-Naz and Chamba House for 30 years. The Ministry has also proposed that Cabinet Committee on Privatisation (CCoP) may oversee the transaction.