Why Govt Split Pakistan Civil Aviation Authority into three Idenities

The Pakistan Civil Aviation Authority (PCAA) has now split into three separate identities, each with its own roles and responsibilities, under the supervision of the Aviation Division of Pakistan. The separation decision came in the wake of a controversy about fake pilot licenses, which had damaged Pakistan’s aviation reputation internationally. This restructuring was seen as a way to restore credibility by strengthening regulatory mechanisms. Given the sensitivity of airspace as a strategic asset, the government decided that regulatory oversight would remain under state control, while commercial airport operations would be outsourced. Provisions were also included for national security, such as allowing defense forces to take over airports during wartime.

• Pakistan Airport Authority (PAA)
• Pakistan Civil Aviation Authority (PCAA)
• Bureau of Air Safety Investigation (BASI)

Previously, the Aviation Division had a separate Ministry but now it’s working under the Ministry of Defense.

Pakistan Airport Authority Act 2023

In Aug 2023 the Federal Government of Pakistan approved the Pakistan Airport Authority Act 2023, which split the PCAA into two entities: one would be responsible for the regulation of civil aviation activities in Pakistan while the other shall be responsible for the provision of civil aviation services and development of aviation infrastructure in Pakistan. Pakistan Civil Aviation Authority (PCAA) shall be entrusted with regulatory functions, whereas, the Pakistan Airports Authority (PAA) shall be entrusted with commercial and operational aspects of airports.

to establish the Pakistan Airports Authority for better administration, operation, and development of airports and air transport services in Pakistan.

Pakistan Airports Authority Act 2023

Pakistan Air Safety Investigation Act 2023

In the same year, the Federal Government of Pakistan approved the Pakistan Air Safety Investigation Act, 2023 for the establishment of the Bureau of Air Safety Investigation (BASI). Previously, Air Safety Investigations were carried out by a unit of the Pakistan Civil Aviation Authority (CAA) which has also been entrusted with regulatory functions. This situation was undesirable in the interest of fairness and objectivity, as stated by Saad Waseem Akhtar Sheikh (MNA).

to provide for better investigation of accidents and other incidents arising out of navigation of aircrafts.

Pakistan Air Safety Investigation Act, 2023

Role of Aviation Division in Pakistan

The Aviation Division was established as an independent division within the Cabinet Secretariat in June 2013 and was given the status of Ministry on 19th April 2022. Now, it is a division under the Ministry of Defence. The Division focused on aviation sector safety, security, and quality requirements in a short period. In a short period, the Division has prioritized aviation safety, security, and quality requirements. The focus areas include bilateral and international liberalization, tax reduction, economic stimulation through tourism and trade, public-private partnerships, and infrastructure development.

Organization Working Under Aviation Division

Benefits of Splitting the Pakistan Civil Aviaiton Authority

This change is intended to bring up Pakistan’s Aviation Industry with worldwide standards established by the International Civil Aviation Organization (ICAO). By separating regulatory, operational, and investigative operations, the government seeks to increase oversight and compliance. The division of the PCAA into specialized organizations allows every organization to focus on its primary tasks while avoiding overlap. This is expected to eliminate bureaucratic delays, simplify processes, and improve decision-making in areas such as airport management and accident investigations. The government sought to segregate regulatory oversight from airport operations to eliminate conflicts of interest.

Separating regulations from commercial operations will ease the outsourcing of airport operations. The plan includes outsourcing airport operations in two phases: first corporatizing airports to attract private investors and then completing privatization transactions with the involvement of financial advisers and investment banking firms. The aim is to improve efficiency and profitability, as only six of Pakistan’s 44 airports are currently profitable.

Two legislative bills were drafted by the govt of Pakistan: one to replace the CAA Ordinance 1960 for strengthening regulatory functions and another to amend the CAA Ordinance 1982 for establishing airport companies under the Companies Act 2017. These laws also allow for transferring employees and assets from PCAA to new entities under favorable terms.