The draft aviation policy among other things has recommended tax-free investment in aviation and called for outsourcing all major airports (Lahore, Karachi, Islamabad) landside and international buildings to prominent foreign companies in airport business through a transparent process.
This was informed in a meeting to Finance Minister Senator Ishaq Dar at the finance ministry on Monday who chaired it and reviewed the proposed aviation policy.
According to a statement of the ministry of finance issued on Tuesday at the outset of the meeting, Special Assistant to Prime Minister on Aviation Capt Shujaat Azeem said in order to encourage aviation sector in Pakistan a dynamic and forward looking draft aviation policy had been formulated on the directives of the prime minister after a gap of 14 years.
All the stake-holders including airlines, flying clubs, charter operators, cargo operators, ground handling agencies and general aviation were consulted in the process, he said.
Capt Shujaat Azeem briefed the meeting about contours of the draft aviation policy emphasizing relaxation in the overall tax regime which he deemed essential to encourage growth of the aviation sector. He said aviation sector’s contribution in Pakistan was under 0.01 per cent as compared to other countries.
For countries like India, Malaysia, Philippines and Thailand, it ranged between 1.5 per cent to 9.0 per cent. Only 8 per cent of the 180 million strong Pakistani population had access to air travel, he informed the meeting.
The situation could change with provision of proper incentives to prospective investors, he observed. The draft policy among other things also recommends tax-free investment in aviation and calls for outsourcing all major airports (Lahore, Karachi, Islamabad); landside and international buildings to prominent foreign companies in airport business through a transparent process.
The policy emphasizes developing quality indigenous repair and maintenance facilities in the country to save huge expenses on seeking such services from abroad.
The meeting was informed that investment in the aviation sector would not only generate more revenue but also create a large number of job opportunities thus helping alleviate unemployment.
Senator Ishaq Dar appreciated the initiative taken by the aviation division in formulation of the said policy. He added that the finance ministry, specifically the FBR, would study fiscal aspects of the policy and apprise the aviation division of its standpoint as early as possible.
