Islamabad Airport, PIA deal with Qatar challenged in LHC
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KARACHI: Nabeel Javed Kahloon Advocate filed a petition in Lahore High Court against government of Pakistan through its secretary Cabinet Division and various other ministries and divisions to declare impugned deal of selling (51pc) of shares along with administrative control of Pakistan International Airlines along with Islamabad International Airport to Qatar investment as illegal unlawful in eyes of law.
Petitioner stated that Pakistan government has offered 51 percent operational control in PIA - Pakistan International Airlines along with Quaid-e-Azam International Airport, Islamabad to Qatar as reported in media. As part of deal, government also intends to offer 51 percent ownership of PIA-owned Roosevelt Hotel in New York to Qatar. Hotel, which closed in October 2020 due to financial constraints, is owned by PIA through its investment arm, PIA Investment Limited.
Proposals were finalized at a high-level government meeting ahead of a state visit by Pakistani Prime Minister Shehbaz Sharif to Qatar. Pakistan is expected to sell shares of Roosevelt Hotel in New York’s Manhattan to Qatar in return for Doha investment in aviation sector. Sources said that Qatar expressed interest in making investments in airport and hotel sectors. It was learned that federal government will hand over administrative affairs of Islamabad International Airport to Qatar, whereas, Qatari company will provide relevant services of airport’s terminal and cargo. Sources said that Qatari government will be given shares of Roosevelt Hotel in New York’s Manhattan financial centre in return for investment.
Investment will be received through state-to-state agreements between Pakistan and Qatar. Land of Islamabad Int’l Airport is worth around 4 trillion rupees excluding revenue being generated out of it.
While undertaking any such step, commercial potential of land may be kept in mind. As Pakistan International Airlines along with Pakistan Civil Aviation Authority are federal government entities, hence PPRA Rules are applicable to all financial transactions. PPRA, rules shall apply to all procurements made by all procuring agencies of federal government whether within or outside Pakistan, whereas procuring agencies, while engaging in procurements, shall ensure that procurements are conducted in a fair and transparent manner, object of procurement brings value for money to agency and procurement process is efficient and economical. Supreme Court in 2014 SCMR 676 held that government projects involving public money, transactions involving public money must be made in a transparent manner for satisfaction of people. Court had duty to ensure that relevant laws were adhered to strictly to exhibit transparency, petitioner added.
Published in The Daily National Courier, August, 27 2022
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