The senate was apprised on Friday by the Minister for Parliamentary affairs Sheikh Aftab Ahmed that the Civil Aviation Authority (CAA) has scheduled to undertake an expansion of the passenger building at the Allama Iqbal International Airport, Lahore.
The minister told during the question and answer session that the approximate cost of the expansion project was Rs43.6 billion and PC-I had been approved by the CAA Board which was fully empowered to endorse projects financed by CAA out of its own resources with the involvement of foreign exchange component being less than 25% of project cost. Financing is being arranged through internal and external sources, Aftab said.
While answering a query, the minister said that only airport services were being reviewed for outsourcing whereas the Air Navigation Services would be provided by CAA. When aircraft starts up and taxis out, it is under the provision of Air Navigation Services (ANS), whereas when it is parked it is under the provision of airport services, he added.
Aftab mentioned that on ground most services are under the jurisdiction of airport services whereas in the air they are under the domain of ANS. And reserved activities like comprising customs, immigration, security, health, meteorology, plant and animal quarantine, CNS/ATM services and other statutory or sovereign functions aren’t going to be outsourced.
While answering another question Aftab stated that PIA has been converted into a public limited company as per PIAC Conversion Act 2016 after its notification on April 19, 2016.Currently, PIA has 35 aircraft in its fleet with 14,317 permanent employees working in the national flag carrier.
He also highlighted the government’s efforts to control losses of the airline which has included the appointing of Dubai Islamic Bank by the Privatisation Commission as financial advisor for the restructuring of the balance sheet and arranging the future course of action for settling loans whereby modalities would be submitted by them.
It was also brought to notice that presently there is no proposal under consideration by the government to acquire any new aircraft for PIACL. Yet, PIACL has invited bids to acquire aircraft on lease, he added. The minister also informed the senate that PIACL has not acquired any aeroplanes during the last five years. Nonetheless, 19 aircraft on dry lease and five on wet lease have been acquired during the last five years.
