Category: Business

  • Islamabad’s New Blue Area auction receives Rs.12 Billion Investment in Just two Days

    New Blue Area project in Islamabad has received an investment of more than Rs. 12 billion in just 2 days of the auction.

    Capital Development Authority (CDA) has organised a three-day auction from July 15 to 17 for the commercial plots of the New Blue Area situated on Jinnah Avenue in front of the F-9 Park.

    So far, eight commercial plots of different sizes were auctioned that were sold for more than Rs. 12.79 billion.

    The spokesperson of CDA said “the New Blue Area project is evidence of Prime Minister (PM) Imran Khan efforts to promote the construction industry in Pakistan. The interest of the investors in the auction process shows their confidence in the business-friendly policies of the Federal Government.”

    The authorities are expecting to receive a total investment of Rs. 15 billion by the end of the three-day auction process, which is ending today.

    The investment that will be collected through the auction will be used in different projects for the betterment of Islamabad residents.

    On 1 March, PM Imran Khan had visited the proposed site of the New Blue Area project before formally launching the project.

    PM Imran Khan had formally approved the plan of the New Blue Area project in February after CDA allocated 170 Kanals for the project on Jinnah Avenue.

  • Trump interested in buying PIA-owned luxurious New York hotel govt wanted to sell

    Trump interested in buying PIA-owned luxurious New York hotel govt wanted to sell

    United States (US) President Donald Trump had expressed interest in acquiring the Pakistan International Airlines’ (PIA) Roosevelt Hotel in New York, it was revealed on Wednesday during a meeting of the National Assembly’s Standing Committee on Privatisation.

    The 19-storey hotel with 1,025 rooms plus allied facilities in New York City, with some of the suites being among the most luxurious available in Manhattan, is considered a valuable property that also carries cultural significance for Pakistan.

    tandingg on the corner of 45th Street and Madison Avenue, in the heart of Midtown Manhattan, the hotel bears a quintessentially American name in honour of former United States (US) President Theodore Roosevelt, who had previously been the governor of New York State.

    According to The News, the managing director of PIA Investments Limited informed the lawmakers that Trump had expressed interest in acquiring the iconic hotel in the past and was “still keen on purchasing it”.

    “The government has tried 10 times to sell the hotel,” he added.

    Briefing the members, Privatisation Minister Muhammad Mian Soomro said the government was not selling the property but rather planning to lease it out or work in a joint venture with the private sector.

    Pakistan Muslim League-Nawaz (PML-N) leader Khawaja Asif said that the parliament should be taken into confidence over the privatisation matter.

    “We are not against privatisation but we must wait for a better time to get a good price,” Asif added.

    “Don’t make a decision now and instead wait. Right now, neither PIA would be sold nor the hotel.”

    Earlier this month, opposition parties had slammed the ruling party when it was reported that the government is considering selling the Roosevelt Hotel.

    The plan was shelved due to stiff opposition and the coronavirus pandemic.

    In a meeting on July 2, the Cabinet Committee on Privatisation (CCoP) decided that the Roosevelt Hotel would be run under a joint venture with a third party.

    The said hotel was acquired by PIA Investment Limited on lease during the year 1979 with an option to purchase the property. PIA had purchased the hotel against $36.5 million against a demand of $59.5 million by contesting a lawsuit against the owner in 1999. The Interstate Hotel and Resort is managing the Roosevelt Hotel since 1997.

  • New heights of friendship: Turkish Airlines to manage Pakistan’s fruit, vegetable exports after PIA ban

    New heights of friendship: Turkish Airlines to manage Pakistan’s fruit, vegetable exports after PIA ban

    As Pakistan International Airlines (PIA) flight operations in Europe remain suspended, Turkish Airlines has offered its services to transport fruit and vegetable exports to other countries, Profit reported.

    According to fruit and vegetable exporters, Turkish Airlines will charge lower freight charges for transport of Pakistani fruits and vegetables to England, Germany and other western countries and has assured that it will facilitate the promotion of the same. 

    Earlier the European Union Air Safety Agency (EASA) imposed a six-month ban on PIA’s flight operations to Europe after reports emerged that several PIA pilots held dubious flying licences

    Among other issues, the ban created problems for the export of Pakistani fruits and vegetables. In this regard,  the Pakistani Embassy in Istanbul Commercial Counselor Bilal Khan Pasha met with Turkish Airlines Chairman Ilker Ayci who assured that Turkish Airlines will resume its flight operation in Pakistan and will help in the export of fruits and vegetables to the European Union (EU).

    Moreover, a delegation of exporters led by Waheed Ahmed, the head of All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association (PFVA) met with Turkish Airlines General Manager (GM) Gurhan Sozen.

    READ: Embarrassment for aviation minister as Civil Aviation Authority says all licences issued are real

    According to Waheed Ahmed, PIA had recently reduced freight charges in order to assist exporters to reduce cost of export shipments, however, after the six month ban on PIA, exporters will have to use the services of foreign airlines who might charge higher freight charges.

    According to exporters, during the meeting with Turkish Airlines GM the need for reduction in freight charges and provision of special handling facilities for perishable cargo to facilitate the export of Pakistani fruits and vegetables to Europe, the UK and Canada was stressed.

  • These pictures of Gwadar Marine Drive after CPEC works will take your breath away

    Stunning views of Gwadar Marine drive after the completion of roads and other construction work under the China-Pakistan Economic Corridor (CPEC) are breaking the internet, and we guarantee you that the following pictures will take your breath away.

    The pictures were first shared by official handle of the CPEC on Twitter as the completion of construction work was announced.

    It wasn’t later that Twitterati among other netizens started reacting to the pictures and expressed their delight.

    Here is what Marine Drive looked until around three years ago.

    Earlier, it was reported that Gwadar’s population is set to exceed two million people in the long run with high-paid expatriate professionals accounting for up to 80 per cent of the population.

    High-paid jobs, tax-free environment, high-tech industries, mega shopping malls, luxury resorts, manmade islands and Pakistan’s largest international airport, which was inaugurated by Prime Minister (PM) Imran Khan in 2019, are all included in the new Gwadar Smart City Masterplan that will see Gwadar become the third-largest city in Pakistan by economic output with assistance from China under the CPEC.

    The governments of Pakistan and China project Gwadar’s economy to surpass $30 billion per annum in the long-term, creating 1 to 1.2 million high-paid jobs with an income per capita of $15,000. Pakistan’s current income per capita meaning the economic output the country generates per person is around $1,500 which Gwadar will eclipse by some 1,000%.

  • PIA likely to face losses over Rs100 billion amid bans, coronavirus

    PIA likely to face losses over Rs100 billion amid bans, coronavirus

    The Pakistan International Airlines (PIA) is expected to incur losses over Rs100 billion due to suspension of international flights amid the fake licences controversy and the coronavirus pandemic.

    As per details, the national carrier is expected to incur losses up to Rs100 billion due to ban on flight operations by the United Kingdom (UK), European Union (EU) and the United States (US). The target of revenue for the current year was set at Rs196 billion.

    Moreover, PIA would also suffer losses of up to Rs12 billion in terms of Hajj operations this year after the Saudi authorities decided to hold the annual pilgrimage on a limited scale, while the airline is also facing losses up to Rs9 billion due to closure of Umrah operations.

    It is pertinent to mention here that that on July 10, PIA Chief Executive Officer (CEO) Air Marshal Arshad Malik had apprised Prime Minister (PM) Imran Khan regarding the status of ongoing dialogues with European Union Aviation Safety Agency (EASA) for the resumption of flight operation. He had also given a briefing to the premier regarding the restructuring process of the national carrier.

    Malik had reportedly presented a comprehensive plan to PM Imran for turning PIA into a profitable national entity and the premier had directed the PIA CEO to expedite the reform process of the national flag carrier.

    He had also summoned the framework for reform agenda within seven days.

  • Honda City in Pakistan vs in India; hardly any price difference but the comparison will blow your mind

    Honda Cars India has revealed all upgraded specs of 6th-generation City in India which will come in both petrol and diesel engine, has more technological features, is larger as compared to its predecessors and is due to hit the roads next month.

    Amid a sense of buzz that has returned to the rather sedate sedan segment in India, car enthusiasts in Pakistan are also keeping an earnest eye out as the 6th-generation offers a slew of upgrades — both in terms of style and drive capabilities, Hindustan Times reported.

    Honda City is quite a popular model in Pakistan but the car has not received much in terms of facelifts and upgrades over the last few years. In a recent comparison between the upcoming City in India and the existing model doing the miles in Pakistan, PakWheels pointed out the glaring differences while also highlighting that the price difference is next to negligible.

    According to the automotive blog, the existing City in the country lacks some of the most basic features that are now almost standard in cars sitting in a much lower segment in the Indian market, as well as in the previous generation City there. The absence of airbags, cruise control, LED headlights, LED taillights, remote entry, rear AC vents, one-touch sunroof are some of the key features that the model in Pakistan skips altogether. Quite obviously then, the City in Pakistan also does not have new features that the sixth-generation model incorporates like Lane Watch camera, Alexa compatibility and Tyre Pressure Monitoring System (TMPS) display.

    While Honda Cars India will officially launch the new City on July 15, Honda Atlas Cars is not expected to launch it in Pakistan anytime before 2021. And even when launched, the car could be priced a lot more than its Indian counterpart because of factors such as vastly different demand scales, production scales and tax structuring etc.

  • US bans PIA

    US bans PIA

    Following footsteps of the European Union (EU), the United States on Thursday banned all flights of Pakistan International Airlines (PIA) with immediate effect.

    The US Transport Department said in a statement that special permission given to PIA had been suspended due to safety concerns.

    The move follows the grounding of 262 airline pilots in Pakistan over fake licences in a decision made by the Civil Aviation Authority of Pakistan.

    PIA said on Thursday it would ground pilots with “dubious” licences.

    As per sources, Kuwait Air has grounded at least seven Pakistani pilots and 56 engineers, while Qatar Airways, Oman Air and Vietnam Airlines have compiled lists of Pakistani pilots, engineers and ground staff.

    The UAE’s Emirates airline has also put a halt on all Pakistani airline flights, barring them from using the airports for destination and transit flights.

    This has been done after the Imran Khan-led government announced and notified various countries about the actions it took against the alleged 141 pilots, who have been grounded and were under investigation.

    As per officials of Kuwait Air, Omar Air and Vietnam Airlines, “employees whose name are on the lists will remain grounded till a report is received from the Pakistani authorities”.

    Moreover, the European Union (EU) has also put a ban on Pakistani airlines while many other Pakistani pilots working on other airlines have also been barred from flying till the investigation into the fake licenses is concluded and results are revealed by the Pakistan government.

    This action was taken after Pakistan International Airlines (PIA) wrote to foreign missions and global regulatory and safety bodies, notifying them that it grounded all 141 pilots suspected of obtaining licenses through unfair means.

    “It is also ensured that pilots flying PIA flights are having genuine licenses endorsed by the government of Pakistan and are in physical possession of the same during all domestic and international flights,” said a copy of the letter sent to the US Embassy in Islamabad.

    Pakistan grounded at least 262 pilots, 109 commercial and 153 airline transport pilots as an investigation to verify their license was initiated.

    The 262 pilots include 141 from PIA, nine from Air Blue, 10 from Serene Airlines and 17 from Shaheen Airlines, which has closed down.

    The step has brought global embarrassment for Pakistan as serious questions are bring raised over the safety of passengers, who use Pakistani airlines services for domestic and international travelling.

    On the other hand, the pilots whose names have been listed and have been grounded, have rejected the claim stating that the government’s issues list is based on wrong and false facts.

    “The list of grounded pilots has stated that many pilots were found guilty of falsely clearing nine papers, while there are eight papers in total required to get a pilot license from Civil Aviation Authority (CAA),” said one of the pilots whose name is in the list.

    “There are many others, who have not even given eight papers till now and are co-pilots, they have put their names in there too,” he added.

    As per Standard Operating Procedures (SOPs) followed by the CAA, a pilot is required to pass all eight papers to become fully qualified, after completing at least 1,500 hours commercial flying time.

    Pilots association has called on the government to form a judicial commission and inquire into the matter, adding that they do not trust the transparency of the government-led investigation.

    The incumbent Pakistan government is also suffering to major criticism by the opposition political parties, who are now accusing the aviation minister and the government for bringing global embarrassment to the country.

  • Six-star PIA downgraded to one   star on fake licences issue

    Six-star PIA downgraded to one star on fake licences issue

    Six-star Pakistan International Airlines (PIA) has been downgraded to one star by AirlineRatings.com after the recent revelation of 150 fake pilot licences.

    The European Union (EU) has banned the airline from member states — costing one star –, while AirlineRatings.com has stripped the airline of three stars for the IATA Operational Safety Audit (IOSA) besides one star for the ICAO country audit.

    The rating downgrade to the lowest safety standards could further dent PIA’s business because customers will avoid travelling through it while other countries may close their airports for Pakistan’s national carrier.

    AirlineRatings.com Editor-in-Chief Geoffrey Thomas said, “Clearly there needs to be an investigation into possible bribery and falsifying related to the pilot licences. This is deeply disturbing as the IOSA audit and ICAO country audit should pick this up.”

    In a statement, IATA said, “We are following reports from Pakistan regarding fake pilot licences, which are concerning and represent a serious lapse in the licensing and safety oversight by the aviation regulator. We are trying to obtain more information on the matter.”

    Earlier, PIA sacked 150 pilots over cheating on their exams in the wake of the Karachi crash of an A320 that killed 98 people in May.

    The sacking had come in the wake of the statement by Aviation Minister Ghulam Sarwar Khan that 262 out of 860 Pakistani pilots had “fake” licences through bribing other qualified pilots to take the exams.

  • Army to finally launch Askari Airline?

    Army to finally launch Askari Airline?

    Amid controversies surrounding the licences of several Pakistani pilots, which have also led to the suspension of Pakistan International Airlines’ (PIA) authorisation to operate in European Union (EU) member states and the United Kingdom (UK), a newspaper clipping pertaining to the launch of army’s Askari Airline has left Twitterati in doubts.

    “Preparations for the launch of Askari Airline completed; licence issued,” read the undated Urdu newspaper clipping making the rounds on the internet.

    The undated Urdu newspaper clipping making the rounds on the internet

    It added that “the chief of army staff (COAS) would inaugurate the project that was in its final stages owing to the efforts of the Army Welfare Trust (AWT)” — Pakistani conglomerate also known as Askari Group of Companies — and mentioned details of the airline’s fleet.

    The clipping drew the ire of a majority of netizens who attempted to draw a link between the downfall of the national carrier and the alleged impending launch of Askari Airline, compelling The Current to look into the claims.

    According to prominent aviation journalist Tahir Imran, Askari Airline was given approval a few years ago, which suggests that the clipping is not a recent one.

    When contacted, Imran said that Askari Airline was among six new airlines that had applied to the Civil Aviation Authority (CAA) for regular public transport (RPT) licences in 2018.

    “These airlines are Liberty Air owned by Chaudhry Munir and Mian Amir, Go Green Airways owned by Elahi Group, Askari Air owned by AWT, United Airways Pakistan Limited owned by Adnan Tabani, AirSial owned by the Sialkot Chamber of Commerce and Afeef Zara Airways owned by Rashid Siddiqui,” he said, adding that even though they had been granted licences, no other airline except AirSial was for now in a position to launch flight operations.

    “But even AirSial faces an uncertain future as its launch scheduled for May 2020 has indefinitely been postponed due to the coronavirus pandemic among other reasons. It might see the light of day by 2020’s end… but everything depends on how the current situation pans out.”

    To a question regarding the fate of Askari Airline, Imran said that no appointments in this regard had so far been reported, let alone any progress towards its launch. “Askari, as well as other upcoming airlines except AirSial, lack the required infrastructure for now and their launch within the ongoing year doesn’t seem possible.”

    ASKARI AVIATION SERVICES:

    Speaking of Askari Aviation Services (AAS), he said it was run by AWT and its activities included domestic and international travel as well as transportation by Askari Charter Services (ACS), ground handling services at Islamabad airport by Askari Airport Services (AAPS), domestic and international air travel ticketing by Askari Travel & Tour (AT&T), ground, cabin and flying training of fixed-wing and rotary-wing aircraft by Askari Flying Academy (AFA) beside aircraft and helicopter maintenance and operation services through Askari Aviation (Pvt) Ltd (AAL).

    “In addition to its integral fleet of helicopter and aircraft, AAS also enjoys the backing of Pakistan Army Aviation and is providing international charter services to the army for its United Nations (UN) peacekeeping troops deployed around the world,” he said.

  • PTI govt mulls selling PIA-owned luxurious New York hotel worth ‘billions of dollars’

    PTI govt mulls selling PIA-owned luxurious New York hotel worth ‘billions of dollars’

    The Pakistan Tehreek-e-Insaf (PTI) government is planning to privatise the Pakistan International Airlines (PIA)-owned luxurious Roosevelt Hotel in Manhattan, drawing the ire of opposition members and the general public for “attempting to sell an asset of the national carrier worth billions of dollars”.

    The 19-storey hotel with 1,025 rooms plus allied facilities in New York City, with some of the suites being among the most luxurious available in Manhattan, is considered a valuable property that also carries cultural significance for Pakistan.

    Standing on the corner of 45th Street and Madison Avenue, in the heart of Midtown Manhattan, the hotel bears a quintessentially American name in honour of former United States (US) President Theodore Roosevelt, who had previously been the governor of New York State.

    It has remained in news for the last several years for its proposed auction. However, the management of PIA always rejected such claims.

    The said hotel was acquired by PIA Investment Limited on lease during the year 1979 with an option to purchase the property. PIA had purchased the hotel against $36.5 million against a demand of $59.5m by contesting a lawsuit against the owner in 1999. The Interstate Hotel and Resort is managing the Roosevelt Hotel since 1997.

    According to a notification issued Monday — at a time when the federal government is reportedly at odds with the national carrier after Aviation Minister Ghulam Sarwar Khan’s statements regarding PIA pilots having “dubious” licences –, the privatisation of the hotel was discussed in a meeting of the cabinet committee on privatisation on Wednesday.

    The meeting was chaired by Adviser to Prime Minister (PM) Imran Khan on Finance and Revenue Dr Abdul Hafeez Shaikh, stated the notification issued a day before the meeting.

    It has, however, not been very well-received by the Twitterati.

    What do you think of the government’s plans to sell the luxury hotel owned by PIA? Let The Current know in the comments.