ISLAMABAD: The Federal Cabinet has constituted a Ministerial Committee headed by Minister for Aviation to decide on proposed one-year relaxation to M/s Jet Green (Pvt.) Ltd from National Aviation policy to raise paid-up capital.
On October 22, 2024, Aviation Division informed that the Federal Cabinet had approved the National Aviation Policy on 9th August 2023. Highlighting the salient features of the policy, it was mentioned that it inter alia prescribes conditions for issuance of new Regular Public Transport Licences (RPT). It was added that Clause 3.1.2.1 stipulates a paid-up capital requirement of Rs. 300 million at the time of application, which was to be further built to Rs.
600 million before issuance of RPT License. It was stated that there was neither provision for relaxation in time or amount in the given policy nor any provision for issuance of license without fulfilling the stipulated conditions.
The Division informed that M/s Jet Green (Pvt) Ltd., a company registered with SECP, had applied for Regular Public Transport (RPT) license. As per its business plan, the company had initially planned to conduct flight operations to Islamabad, Gilgit, Chitral, Skardu, D.G. Khan, Karachi, Lahore, Quetta, Bahawalpur, Rahim Yar Khan, Peshawar, Multan, Gwadar and Sukkur with ATR-72 aircraft. The proposed business Plan of M/s Jet Green was in line with the requirements of NAP-2023.
The requisite documents had been evaluated by Pakistan Civil Aviation Authority (PCAA) and were found in order. The Aviation Division informed that the company’s current paid-up capital was, however, Rs. 379,424,977 as of June 30, 2023, which did not meet the condition of Rs. 600 million for grant of RPT licence. Therefore, the company had requested a relaxation of two years to meet the said requirement.
Aviation Division further informed that the matter was taken up in the 10th meeting of the Executive Committee of the Strategic Investment Facilitation Council (SIFC) on June 26, 2024, wherein the SIFC gave the direction that “CAA to take undertaking from M/s Jet Green for raising of remaining Rs. 200 million within one year and RPT licence be issued.” The Cabinet was further informed that the company had also submitted the requisite undertaking.
The Aviation Division stated that under Clause 6.6 of NAP-2023, the Federal Cabinet was competent to grant any such relaxation. In view of foregoing, Aviation Division solicited approval of the Federal Cabinet to any one of the following proposals: (i) National Aviation Policy 2023 may be amended to allow all applicants a period of one year after issuance of RPT licence to raise their paid-up capital from Rs 300 million to Rs 600 million: OR (ii) (b) M/s Jet Green may be granted a one-time relaxation from NAP-2023 to raise its paid-up capital to Rs. 600 million within one year of issuance of RPT licence as per decision of SIFC.
The Cabinet considered the summary of October 18, 2024, titled ‘issuance of Regular Public Transport (RPT) License to M/s Jet Green (Pvt.) Ltd submitted by the Aviation Division and constituted a Cabinet Committee in terms of rule 17(3) of the Rules of Business, 1973, with the following composition and Terms of Reference: (i) Minister for Aviation;(ii) Minister for Commerce ;(iii) Minister for Communications ;(iv) Minister for Finance and Revenue ;(v) representative of Pakistan Civil Aviation Authority;(vi) Secretary, Aviation Division ; and (vii) any Co-opted Member/s.
The Committee shall review all aspects of the proposal made in the summary submitted by Aviation Division along with other ancillary matters.
The Committee shall submit its report within two weeks for consideration of the Cabinet, with a clear recommendation as to whether or not M/s Jet Green (Pvt.) Ltd’ should be granted a one-time relaxation from NAP-2023 to raise its paid-up capital to Rs. 600 million within one year of issuance of an RPT license; and if so granted, whether or not such relaxation should also be given to all applicants of RPT licences.
