SPORTS, TOURISM, ARCHAEOLOGY & MUSEUMS

AND YOUTH AFFAIRS DEPARTMENT,

GOVERNMENT OF KHYBER PAKHTUNKHWA

TOURISM CORPORATION
13-A, Attached Building Complex, Khyber Road,
Peshawar. Phone: 9211091 Fax: 9210871

PC-I

OF THE
UMBRELLA SCHEME NAMELY
TOURISM DEVELOPMENT
ACTIVITIES IN KHYBER PAKHTUNKHWA
(ENDOWMENT FUND)
(PRESENTATION TO PDWP)
ADP 2011-2012, REFLECTED AT SERIAL NO. 719 WITH
COMPUTER NO.110561, HAVING COST AND
ALLOCATION OF RS:500.000 MILLION
(ON THE REVENUE SIDE)
TOURISM DEVELOPMENT ACTIVITIES IN KHYBER PAKHTUNKHWA (ENDOWMENT FUND)

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TOURISM DEVELOPMENT ACTIVITIES IN KHYBER PAKHTUNKHWA (ENDOWMENT FUND)

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Revised 2005

GOVERNMENT OF PAKISTAN
PLANNING COMMISSION
PC-I FORM
(SOCIAL SECTORS)
1.

Name of the project :

PC-I of the Umbrella scheme namely

Tourism Development Activities in Khyber
Pakhtunkhwa (Endowment Fund)

2.

Location

Khyber Pakhtunkhwa

3.

Authority responsible for

i. Sponsoring

Tourism Department, Government of

Khyber Pakhtunkhwa.

ii. Execution

Tourism Corporation, Peshawar.

iii. Operation and maintenance

Tourism Corporation, Peshawar.

iv. Concerned federal ministry

Tourism Department, Government of

Khyber Pakhtunkhwa.

4.

Plan provision

5.

Project objectives and its relationship

with Sectors objectives:

TOURISM DEVELOPMENT ACTIVITIES IN KHYBER PAKHTUNKHWA (ENDOWMENT FUND)

The scheme namely PC-I of the Umbrella scheme

namely Tourism Development Activities in Khyber
Pakhtunkhwa (Endowment Fund) has been
proposed in the ADP 2011-2012, reflected at serial
No. 719 with computer no.110561, having cost and
allocation of Rs:500 million (on the revenue side).

The scheme has been prepared to increase the

flow of domestic tourists to Khyber Pakhtunkhwa
besides equipping the Tourism Corporation to
become self-sustainable with the provision of
endowment funds of Rs. 500 million, the profit of
which shall be used to run the affairs of the
corporation. At the same time the provincial
government has committed the transfer of 10 rest
houses initially to be utilized for tourism promotion
in the province and raising revenues for the
corporation for sustainable investment in tourism
without extra regular annual burden on the
provincial exchequer.

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6.

7.

Description, justification and

technical parameters

The proposed scheme is in line with the policy of

the provincial government to strengthen the
devolved subject of tourism as an industry in the
next decade and at the same time aiming for
creating a conducive environment that in turn is
expected to enhance the soft image of Khyber
Pakhtunkhwa on the one hand while making
tourism as a venture for income generation by the
local communities on another. The thrust of the
activities is to generate opportunities for healthy
recreation that is in consonance with the local
heritage, traditions and norms. It also incorporates
promotional activities, creation of tourism facilities
for generating ample income to support the
communities while at the same time be an auto
system that expands and grow for accelerating
economic activity at grass root level. It also
incorporates the notion of provision for logistics for
the holding of regular tourism propagating events
throughout the province thereby defeating militancy
by means of this cultural offensive.

Capital cost estimates:

The following is the procedure for utilization of the proceeds received on the endowment fund
of Rs. 500.000 million reflected at serial No. 719 with computer No.110561:

The amount Rs. 500 million reflected at serial No. 719 with computer No.110561,
having cost and allocation of Rs:500 million (on the revenue side) to be kept in bank or
development financial institutions etc. on maximum interest rate.

The Bank and type of deposit to be decided by a committee under Managing Director
with following as members:

General Manager(Admn).
General Manager (P&D).
Manager Admin & Properties.
Controller Accounts.

The above measure would be approved by the Boards of Directors.

Only the profit accrued for the said amount would be spent on events which are
approved by the Board of Director in a detailed presentation for the purpose. The
principal amount will remain intact.

Event would be such as to

o
o
o
o

Enhance the corporate image of the corporation.

Promote tourism in the province.
Improve the soft image of the province.
Open up new avenues of tourism in the province.

TOURISM DEVELOPMENT ACTIVITIES IN KHYBER PAKHTUNKHWA (ENDOWMENT FUND)

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Members of Board of Director are:

I.

Minister for Tourism,

Chairman

II.

Chief Secretary, Government of KPK

Director

III.

Additional Chief Secretary, P&D Deptt: KPK

Director

IV.

Secretary S&GAD Department

Director

V.

Secretary Finance Department

Director

VI.

Secretary Tourism Department

Director

VII.

Secretary Forest Department

Director

VIII.

Secretary Law Department

Director

IX.

The Director General, Environmental Protection Agency Director

X.

The Director Galyat Development Authority, Abbottabad/

The Commissioner, Hazara Division, Abbottabad.

Director

XI.

The Director Archeology, Peshawar

Director

XII.

Managing Director, Bank of Khyber

Director

XIII.

Managing Director, TCKP

Director

XIV.

General Manager, TCKP

Secretary

8.

Annual operating and maintenance cost

after completion of the project:
The sub schemes would be operated through the
private sector on public-private partnership basis
wherever feasible and on sponsorship through
mutual collaboration with interested agencies,
such as Development Financial Inititutions,
NGOs, INGOs, Local communities etc. The
recurring expenditure of sub schemes operated
and maintained by TCKP would be met out from
the proceeds of the activities after levying nominal
ticketing, surcharge in ordered to make it self
sustainable in the long run.

9.

Demand and supply

TOURISM DEVELOPMENT ACTIVITIES IN KHYBER PAKHTUNKHWA (ENDOWMENT FUND)

There is enormous potential for tourism in the

Khyber Pakhtunkhwa scenic beauty and
hills in the north, Ghandara civilization and other
rich cultural heritage in the plains and
archeological sites and rugged terrain in the
south. The corporation intends to capitalize on the
comparative advantage of the province in the
tourism sector in order to make it an income
generating venture for the province that finally
establish linkages and coordination with similar
organization within and outside the province as
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well as the neighboring countries of Afghanistan,

China and possibly central Asian republic states.
10.

Financial Plan and mode of financing

Rs. in million
-------------------------------------------------------------------------------------------------------------------------Amount for
Amount for
Capital
Recurring
Sources
Expenditure
-------------------------------------------------------------------------------------------------------------------------I
(a)
Government sources:
(Federal/Provincial)
Provincial
(i)
(ii)
(iii)
(iv)

Grant
Loan
Equity Investment
Direct Government
Expenditure

Rs. 500 million endowment fund

NONE
NONE

Note: the Rs. 500 million would be kept in bank of

repute and appropriate ranking to be selected after
competitive rate for profit selection process for
indefinite period starting from 5 years to 15 years.
Only the proceeds from the profit so accrued would
be utilized for meeting the operational costs of the
Tourism Corporation, Khyber Pakhtunkhwa on both
the development and non-development side. In the
mean while revenue would also be generated in a
phased manner from the assets and activities of
the corporation to make it a lead organization for
the promotion of tourism in sustainable manner.
(b)

Sponsoring Agency's own

Contribution.
Establishment, O&M expenses will be borne by
TCKP from the proceeds of the profit of the Rs.
500 million endowment fund that would be kept in
bank of repute and appropriate ranking to be
selected after competitive rate for profit selection
process for indefinite period starting from 5 years
to 15 years. Only the proceeds from the profit so
accrued would be utilized for meeting the
operational costs of the Tourism Corporation,
Khyber Pakhtunkhwa on both the development and
non-development side. In addition to above if any
special task is assigned by the competent authority
it would have to be supported by financial
commitment.

(c)

Private Investment

TOURISM DEVELOPMENT ACTIVITIES IN KHYBER PAKHTUNKHWA (ENDOWMENT FUND)

NONE
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(d)

II

Local Body resources

If any.

NONE

(e)

Non-Government borrowing.

NONE

(f)

Other sources
(e.g. Recoveries)

NONE

(a)

Likely sources and amount of foreign exchange cost of the project.

NIL.

(b)

Present position regarding availability, commitment of negotiations.

NIL.
Since the scheme is purely financed from the
proceeds of the endowment funds that would be
kept in bank of repute and appropriate ranking to
be selected after competitive rate for profit
selection process for indefinite period starting from
5 years to 15 years. Only the proceeds from the
profit so accrued would be utilized for meeting the
operational costs of the Tourism Corporation,
Khyber Pakhtunkhwa on both the development and
non-development side.

11.

Project benefits and analysis

i. Financial Social benefits with indicators
The assets of the corporation are expected to
provide
a
healthy
competitive
economic
environment among the various business venture
in the private sector as a lead role model and boost
the soft image of KPK. It is further expected that
more tourists will be attracted. Moreover the
functioning of the corporation is also expected to
improve with better logistics and expanding
publicity and trend throughout the region and finally
around the globe.

TOURISM DEVELOPMENT ACTIVITIES IN KHYBER PAKHTUNKHWA (ENDOWMENT FUND)

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ii. Employment generation

(direct and indirect)

iii. Environmental impact

iv. Impact of delays on project

cost and viability

12.

13.

Implementation Schedule (including

starting and completion dates)

Additional projects / decision required

to maximize socio-economic benefits
from the proposed project.

TOURISM DEVELOPMENT ACTIVITIES IN KHYBER PAKHTUNKHWA (ENDOWMENT FUND)

The sub schemes under the umbrella scheme are

expected to directly contribute to the improvement
of existing assets/creation of new assets and to
enable the corporation to be mobile in the field in
order to peruse the notions of promotion of tourism
through income generation by the local
communities through small scale enterprising
activities for elimination of poverty and making
tourism as an industry in the province on sound
footing.

The initial environmental examination indicates that

the proper disposal of sanitation would help in
maintaining clean environment.

All the activities have been casted for the current

FY on current market rates and therefore, no
escalation of cost is expected. This current PC-I
will be the basis for subsequent PC-Is to be
recommended for approval / approved in
anticipation by the Managing Director from the
Board of Directors in its meeting.

The current phase of the scheme has to be

completed by the end of current FY i.e 01-072011 through 30-06-2012.

The operationalization of some asset for

demonstrative effect and leasing out of other
assets would enable this corporation to set a
standard for the private sector. At the same time it
would sensitize the local communities for
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undertaking tourism as income generating

activities at the grass roots level thereby creating
employment to the locals especially the youth.

14.

Certified that the project proposal has

been prepared on the basis of guidelines
provided by the Planning Commission
for the preparation of PC-I for Social
Sectors.
The cost estimates are according to the open
market rates.

PREPARED BY:

_________________________
(MUHAMMAD TANWEER)
COMPUTER PROGRAMMER,
TOURISM CORPORATION

_____________________
(SAJJAD HAMEED)
MANAGER ADMINISTRATION & PROPERTIES
(P&D),TCKP
CHECKED BY:

_________________________
HAYAT ALI SHAH)
GENERAL MANAGER (P&D),
TOURISM CORPORATION

__________________________
(MUSHTAQ AHMAD)
GENERAL MANGER (ADMN)
TOURISM CORPORATION
APPROVED BY

________________________________
(MUHAMMAD AZAM KHAN)
MANAGING DIRECTOR,
TOURISM CORPORATION /
SECRETARY TO GOVERNMENT OF KHYBER PAKHTUNKHWA
SPORTS, TOURISM ARCHEOLOGY,
MUSEUMS AND YOUTH AFFAIRS DEPARTMENT

TOURISM DEVELOPMENT ACTIVITIES IN KHYBER PAKHTUNKHWA (ENDOWMENT FUND)

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