National Aviation Policy approved to woo investors

Published August 10, 2023
In this file photo, PML-N leader Khawaja Saad Rafique addresses a press conference in Lahore. — DawnNewsTV/File
In this file photo, PML-N leader Khawaja Saad Rafique addresses a press conference in Lahore. — DawnNewsTV/File

• Agreement on ML-1 project with Beijing likely in October, says Saad Rafique
• Insurance money for railway passengers increased

ISLAMABAD: Aviation Minister Khawaja Saad Rafique on Wednesday announced that the federal government has approved the National Aviation Policy 2023 to revive the national carrier and promote public-private joint ventures.

Addressing a press conference on Wednesday, the minister said under this new policy “all missing aspects will be covered and private investors will be encouraged” to invest in this sector.

He said privatisation or public-private investment was the only option to improve the aviation sector, as attracting international firms was not possible when the sector was working with limited resources. He said that the Islamabad airport was being outsourced through international competitive bidding for 15 years but no employee lost their job.

He said that the Civil Aviation Authority (CAA) issued a tender for outsourcing the Islamabad airport and so far 25 applications have been received. The aviation minister said that more than 12 airlines have been allowed to operate in Pakistan.

National Aviation Policy

Earlier, the cabinet approved the aviation policy with proposed major amendments. The revised policy proposed major amendments in safety security and regulatory oversight, air traffic rights, guidelines on air service operators, aviation infrastructure development, guidelines for allied service providers, and the policy’s implementation and revision.

As per the policy, the CAA shall encourage development of certified aircraft simulator infrastructure in Pakistan and inspect and certify simulators to cater to training and development needs of flight crews.

The CAA will provide land for the simulator setup at rationalised rates. It added 100 per cent foreign direct investment shall be permitted; however, JV with a local business entity would be preferred.

Under the amended aviation policy, a foreign registered private aircraft may be allowed to conduct air operations within Pakistan for non-commercial purposes as per CAA requirements.

Special attention will be given to safety oversight inspectors, air traffic controllers and flight crew training and personnel licencing, enhancement of language proficiency of pilots and controllers, aerodrome certification, dangerous goods regulations, containing airworthiness, threat & error management (TEM), and human factors.

It said a national safety plan has been developed in line with global practices while the Aircraft Accident Investigation Board (AAIB) shall carry out investigations pertaining to accidents involving civil aircraft in Pakistan. If a Pakistan-registered aircraft encounters any incident or accident outside Pakistan, it may also be investigated by AAIB after the authorisation of the Ministry of Aviation.

Instrument Landing System (ILS) facility shall be provided at all major aerodromes with its category corresponding to requirements and frequency of traffic. Certified Aircraft Maintenance Organisations and Maintenance Repair and Overhaul shall be incentivised to establish facilities in Pakistan.

Ground handling services providers are permitted to set up joint ventures with foreign companies or persons subject to the CAA’s approval. Flight catering services to air service operators will only be provided by CAA-approved flight kitchens. The ASF working under the Ministry of Aviation shall provide security for all civil aviation installations in Pakistan and the CAA will be the aviation security regulator.

ML-1 accord in October

Speaking to reporters, Mr Rafique, who also holds the railways portfolio, said the ML-1 agreement between Pakistan and China would be signed in October and the project may start in January 2024. It is expected that President Arif Alvi or the caretaker prime minister would travel to Beijing for the ML-1 agreement, he added. The project covers a dual track with a length of 1733kms from Peshawar to Karachi, having a capacity of 100 up and down trains between Peshawar and Karachi.

The minister said the project has now been pitched at $6.8 billion against the original cost of $6.6 billion after the evaluation carried out by the coalition government.

The project when completed will have increased market share from existing 4 per cent to 20 per cent besides providing employment opportunities to 20,000 technical experts, he explained.

About the introduction of bullet trains in Pakistan, the minister said, “The project would cost $66 billion and would not be affordable for railway passengers in terms of fare.”

Saad Rafiq said if the railways system in Pakistan is to be sustained its land resources would have to be utilised.

Insurance increased

Pakis­tan Railways and State Life Insurance Company concluded an agreement on Wednesday under which coverage of insurance of passengers has been increased.

PR’s Chief Executive Officer Shahid Aziz said that in the event of any accident, the payment of insurance money for a deceased passenger has been increased from Rs1.5 million to Rs2.5m. In the case of disability, the insurance cover will be Rs300,000.

Railways Minister Saad Rafique instructed railway officials to visit the families of deceased passengers of Nawabshah train accident and get confirmation from the families for payment of insurance money at their doorsteps.

Published in Dawn, August 10th, 2023

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

After the deluge
16 Jun, 2024

After the deluge

AS on many previous occasions, Pakistan needed other results going their way, and some divine intervention, to stay...
Fugue state
16 Jun, 2024

Fugue state

WITH its founder in jail these days, it seems nearly impossible to figure out what the PTI actually wants. On one...
Sindh budget
16 Jun, 2024

Sindh budget

SINDH’S Rs3.06tr budget for the upcoming financial year is a combination of populist interventions, attempts to...
Slow start
Updated 15 Jun, 2024

Slow start

Despite high attendance, the NA managed to pass only a single money bill during this period.
Sindh lawlessness
Updated 15 Jun, 2024

Sindh lawlessness

A recently released report describes the law and order situation in Karachi as “worryingly poor”.
Punjab budget
15 Jun, 2024

Punjab budget

PUNJAB’S budget for 2024-25 provides much fodder to those who believe that the increased provincial share from the...