The CAA Land Lease Policy was formulated in 1985 under the provisions of Pakistan Civil Aviation Authority Ordinance (xxx of 1982), whereby approval of the Ministry of Defense was compulsory for all leases. This practice remained in force till 6th August, 1999. In this way CAA remained confined to the bare necessary operational requirements involving oil companies, airlines and handling agencies etc. With the deletion of sub-section (4) of Section 11 of CAAO 1982 on 7th August, 1999 and the general financial crunch related to various targets of CAA, a new environment emerged requiring exercise of more administrative and financial autonomy to generate revenue for CAA through large scale commercial exploitation of its lands. The foregoing circumstances necessitated revision of Land Lease Policy and taking bold initiatives without endangering the permanent interests of CAA.

In the formulation of new Land Lease Policy various alternatives have been considered for revision of standard formats for execution of lease, comprising different tenures, terms and rates along with their financial impact.

A comprehensive review of the Land Lease Policy has been carried out to remove the irritants and to soften the rigid components without compromising the CAA’s interest with a view to make the Policy more attractive/investor friendly. Efforts have been made to incorporate elements of negotiations, rational pricing, payments re-structuring, period/tenure flexibility and autonomy, both administrative and financial. In this Policy, any case meriting different treatment will be analyzed for making recommendations to the Executive Committee of the CAA or the Board.

The CAA Land Lease Policy approved by CAA Board in its 92nd Meeting held on 2nd June 2001 is as follows.

Download the standardized form of

agreement duly approved by the Government after incorporating the due changes/modification in conformity with the CAA Land Lease policy.

The duration of lease shall be 30 years which is renewable on mutual consent.

The market value of the land shall be assessed by a committee comprising the following, at locations and HQCAA, but the value of land assessed by Collector/Revenue authority of the District, shall be kept as a base line. If the price of land being offered through auction is equal to or more than the assessed value, the Committee may take an independent decision. All other cases shall be submitted to CAA Board for approval.

At CAA Headquarter:    Director Commercial & Estates.
                                      General Manager Estates.
                                      General Manager Legal.
                                      General Manager Finance.
At Locations:                 Director Commercial & Estates.
                                      Estates Representative.
                                      Legal Representative.
                                      Finance Representative

It shall be fixed with reference to land value and be charged not less than 30% of the land value. The payment may be made in lump sum or it may be re-structured so as to be staggered in equal installments as follows

• First at the time of award of lease


• Second on the expiry of the construction period as per lease agreement


• Third installment six months after the second installment

The annual rent of the land shall be fixed at a sum which will be equal to 1/30th of the value of land for the first ten years. It shall be enhanced by 100% on expiry of each term of ten years.

Where the lessee fails to commence construction or commits delay in launching of a project he will be liable to pay a penalty ranging from Rs.100/- per sq.yd per annum to Rs.300/-. Per sq.yd per annum depending on the location of the site.

In case construction is not commenced or completed within the period provided in the lease agreement or within the extended period provided in the lease agreement or within the extended period allowed by the competent authority, termination of lease/resumption of land shall be stipulated in the lease agreement.

The method of leasing will be Auction or Private Treaty.

• The lease of land shall be either through open auction, open bidding or calling tenders after pre-qualifying firms, as may be required through wide publicity in the press and media. This will be done by Commercial Directorate or respective Airport Managers

• Executive Committee may decide to dispense with the auction of the lease and may instead cause the site to be leased by Private Treaty on such terms and conditions as may be recommended by the respective Committee


• Leasing at the concessional premium through Private Treaty for place of worship or amenity purpose has been abolished


• The Private Treaty is to be resorted to sparingly and be restricted to Government/Semi Government agencies, airlines and other such functionaries, where auction cannot be resorted to


• All private treaties shall carry the approval of CAA Board

All cases for disposal of land shall be accorded final approval by the Executive Committee or CAA Board depending on the valuation of land as foll

• Cases involving upto Rs.100 Million of the land value be approved by Executive Committee


• Cases over Rs.100 Million of the land value be approved by CAA Board