ISLAMABAD, May 9: The implications of Karachi’s suicide bombing on the country’s tourism were discussed at a meeting of Ad-hoc Public Accounts Committee here on Thursday, which noted that already there was a marked decline in tourist arrivals, with foreign tour operators incessantly citing security concerns.

The committee was informed that some potential tour contracts had to be abandoned due to the Sept 11 terror blitz and the chain of events that it triggered. The committee asked the public sector tourism operators to expand their scope of activity to include domestic tourism with a view to getting quick and sure results.

The committee, which met on Thursday with Mr H.U. Baig in the chair, observed that while tourism industry served as one of the largest foreign exchange earners in many countries, Pakistan failed to promote it due to negligent and indifferent attitude of the government.

The APAC expressed its displeasure over PTDC officials’ shirking in the submission of approved accounts and balance sheet for the year 1999-2000. The chairman noted that the accounts apparently were deliberately delayed by not holding the long overdue meeting of the board of governors, to escape approval of the audit reports.

Federal secretary tourism told the committee, in the capacity as PAO, that no government in the past 52 years had given attention to the most important foreign exchange earning sector, with the result no tangible progress was made in this area.

The audit officials said the PTDC had accumulated losses worth Rs89.5 million. The committee chairman termed the organization a non-viable institution, which ought to be wound up.

The audit report said that a number of projects started during the period between 1976 and 1994 were abandoned halfway through, as they were initiated without preparing sufficient feasibilities.

The PTDC MD informed the committee that the corporation had started earning profits through a number of its projects, including some two dozen motels and three hotels, which had picked up remarkably over the last two years.

He said the unfortunate incidents of Sept 11 and the recent blasts in Islamabad and Karachi constituted roadblocks to the way forward, as progress had been made in negotiations with the foreign tour operators. He said tourists from Japan, Korea and Germany would be coming, provided security problem in the country was overcome.

The committee took stock of the failure/abandoning of five out of seven projects initiated by the PTDC and asked the officials concerned to hold a thorough inquiry into them and try to revive all or some of them, if feasible.

The issue of liquidation of National Film Development Corporation (Nefdec) also came up for discussion which has assets worth Rs120 million, with liabilities of Rs20 million. The committee directed accelerating the process to save the institution from accumulating further losses.

The ministry of culture told the committee that negotiations were going on with the PTV and Radio Pakistan for the sale of shares of Shalimar company to pay the dues to Nefdec employees before their lay-off.