ISLAMABAD: The PTI-led government, which has long taken a critical stance against the 18th Amendment, has started handing over Pakistan Tourism Development Corporation’s (PTDC) assets worth billions of rupees to the provinces under the legislation free of cost.

In this regard, the federal government handed over 19 motels and resorts of the PTDC to the Khyber Pakhtunkhwa government last week.

The Centre is also holding negotiations with the Punjab government for handing over all motels of the corporation located there to the provincial government.

A few years ago, the National Industrial Relations Commission had barred the federal government from handing over PTDC’s assets to the provinces after the corporation’s employees informed the court that the government was bent upon “illegally” handing over resorts and motels of the corporation to the provinces free of cost.

19 motels, hotels given to KP govt last week

They argued that PTDC’s assets could be handed over to the provinces only under the Companies Act of 1984, which requires hiring of a liquidator to evaluate market price of all motels and resorts before the handover.

The PTDC has 39 motels and resorts, mostly in Khyber Pakhtunkhwa. Under the 18th Amendment, the Ministry of Tourism has been devolved to the provinces.

A document said the 76th meeting of the PTDC board had decided to appoint a liquidator to ascertain the actual value of PTDC’s assets and liabilities, including legitimate dues of the corporation’s employees like gratuity, leave encashment, provident funds and other perks and privileges the organisation must pay to its deceased and retiring employees.

The current government, which places tourism promotion as one of its top priorities, closed all PTDC-run motels in the country and terminated the services of its employees in July 2020 on the ground that they were suffering losses due to the Covid-19 pandemic. Tour operators described it as a major setback to the tourism industry.

When contacted, PTDC accounts manager, who has not been sacked along with other skeleton staff, told Dawn that 19 motels of the corporation had been handed over to the KP government, which would further lease them and 10 per cent share would be given to the corporation.

He said negotiations with the Punjab government were in the final stages under which all PTDC motels and hotels located there would soon be given to the provincial government.

The official said the corporation would retain its motels in Gilgit-Baltistan and Azad Jammu and Kashmir and would lease them by itself. He said the decision to hand over the PTDC assets to the provinces had been taken by the federal cabinet and endorsed by the law ministry.

The 18th Amendment, under which the government is handing over precious assets of the PTDC to the provinces, has been criticised by Prime Minister Imran Khan several times in the past. PTDC employees opposed the government’s decision to hand over the corporation’s assets to the provinces and described this act as “illegal”.

Published in Dawn, March 7th, 2022