The Pakistan International Airlines (PIA) is facing stiff resistance from the Religious Affairs Ministry on proposed increase of 25 percent in Haj fare, it is learnt reliably.
However, Defence Ministry is of the view that the airline should be allowed to increase 10 percent Haj fare because the cost of acquiring aircraft for Haj operation on wet lease had reportedly gone up by at least 10 percent.
The final decision would be taken by the federal cabinet, in its meeting on June 27 to be presided over by Prime Minister Shaukat Aziz. Sources said the Religious Affairs Ministry had invited the PIA chairman to discuss Haj operation 2007 especially fare on May 7.
The PIA chief stated that in recent months fuel prices have started increasing and estimated cost projected for Haj December-2007 period is $71 per barrel. It was proposed by PIA to increase Haj fare by 25 percent.
The ministry argued that last year PIA expected increase in oil prices up to $70 per barrel and sought increase in Haj fare by more than 40 percent. The matter was taken up by the prime minister and fare was fixed in the meeting presided over by him. Consequently, fare for Haj December-2006 was increased by 21 to 23 percent.
The perception of the PIA was not correct and oil price did not reach the extent it was apprehended. Thus PIA would not have suffered losses during last year Haj operation.
PIA has now again predicated increase in fuel prices in the coming Haj season up to $71 per barrel. The demand for enhancement of 25 percent fare against the estimated increase of only $1 per barrel against the last year's projected price of $70 per barrel is not logical, the sources quoted the ministry as saying.
Sources said the PIA chief was told that it would not be a desirable proposition to increase the Haj fare consecutively for two years. The public perception is that the government would decrease Haj fare for the forthcoming Haj owing to decrease in the oil prices.
The standing committees of Senate and National Assembly on religious affairs have also recommended reduction in the air fare for Haj December-2007. "The increase in Haj fare will be criticised by the people at large and the situation could be exploited against the government by vested interests," the sources maintained.
They also said that rates of the building/hotel accommodation in Makkah have increased manifold due to demolition of buildings within the vicinity of Haram Sharif for expansion in the prayer area.
In these circumstances, the ministry is facing difficulty in selecting accommodation according to requirement. But the ministry has decided not to increase the ceiling and manage the affairs through other discourse, the sources continued.
Sources said the ministry is of the considered opinion that the increase in the air fare consecutively for two years is in no way justifiable. It will invite criticism from the public and tarnish the image of the government.
It has been suggested that PIA may reconsider its proposal to increase the air fare during Haj December-2007 and manage the fiscal deficiency, if any, through professional and managerial competence.
Meanwhile, the Defence Ministry has also opposed any increase in Hajj fare assuming that there would be no change in oil prices in the international market, but at the same time it recommended 10 percent increase in fare on account of aircraft to be acquired on wet lease for Hajj operation.