G-B govt leases out 37 rest houses, forest sites to army entity

GILGIT: The Gilgit-Baltistan government has leased 37 rest houses and forest sites to Green Pakistan Tourism Company, a subsidiary of the Pakistan army, for only Rs0.8 million per month rent for 30 years.

The G-B government said the initiative was taken to “enhance revenue generation”.

According to the agreement, 17 properties belonged to the G-B Forest Department, while 20 belonged to the Communication and Works Department. The total area of the 20 Communication and Works Department properties is spread over 1 mile. These properties are rented out for only Rs0.7 million per month.

A letter by REDD+ GB Coordinator Mujeeb Sardar to the Gilgit Baltistan Forest, Wildlife & Environment Secretary identified 17 sites spread over an area of over 450 acres and collectively valued at around Rs10,000 million for the purpose. These properties are rented out for only Rs1.63 million annually, meaning Rs0.135 million per month.

Mujeeb Sardar, in his letter, underscored the dual necessity of generating revenue while conserving the region’s green spaces and forests. He acknowledged the crucial role of the department and its understanding of the necessity for revenue generation in the recent economic situation of Pakistan in general and G-B in particular.

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He emphasized, “It’s crucial for us, as stewards of these lands, to prioritize the conservation of forests and green spaces.” The highlighted sites are not only important for their ecological benefits but also serve as critical habitats for wildlife, contributing significantly to environmental health.

Further emphasizing the ecological stakes, Sardar noted, “Considering the importance of these sites for maintaining ecological balance, it’s essential to explore revenue generation methods that don’t compromise the primary purpose.” He also pointed out the practical challenges of providing suitable accommodations for staff who manage these remote areas, suggesting that the forest huts, which serve as both residences and operational bases, are integral to forest management efforts.

The coordinator also mentioned that these forests, developed on marginal lands, riverbeds, and wastelands, have gained economic importance through plantations. Any repurposing of these areas for revenue purposes should include a plan for alternative land allocation for agroforestry development and staff housing, ensuring the continuity of conservation efforts.

In a brief conversation with HUM News English, Zafar Waqar Taj, Secretary for Forest, Wildlife & Environment, expressed his full backing for the initiative, asserting that it aligns with government and departmental goals.

During a conversation with HUM News English, REDD+ GB Coordinator Mujeeb Sardar explained the financial aspects of the agreement. Under the agreement, the company will not only pay rent but will provide 20 per cent of the profit for tourism development, and 35 per cent will directly be shared with the government.

He noted that according to the rules, the rent of any property becomes 20 per cent of its value. Mujeeb clarified that the estimated value of the property was valued at a higher rate than the government rate, which would benefit the government. The government value of the sites was much lesser as most are in far-flung areas. To date, the company has taken control of six to seven sites. It will take control of the rest, including the forest, parks, wildlife, and Environment secretariat, where he was giving the interview.

When asked about operational challenges that could arise, he stated that the guest houses were used to accommodate forest staff and for other official purposes. He highlighted a primary concern about the accommodation of forest staff, including guards, who are crucial for forest protection. They can’t fulfill their duties diligently without proper rest in harsh forest areas. He hinted that they would reconstruct new buildings for their staff if problems arose.

When asked about climate concerns, Mujeeb reassured that according to the agreement, no single tree would be cut down, and they would try to implement the deal in true spirit.

Regarding alternative revenue generation strategies, he mentioned that although carbon credits could be a better choice, as the forest is being protected under the agreement, the carbon credits would not be hurt. They have five to six proposals for purchasing the credits. Mujeeb added that his department had raised various concerns about the outcomes of the development, and it was assured about remedies.

Mujeeb further said that the company would construct eco-friendly buildings on maximum sites and return them to government on expiry of the agreement after 30 years.

According to sources, PPRA rules were bypassed through the Special Investment Facilitation Council (SIFC) as no advertisement was issued and bids were sought.

When asked about this, G-B Food Minister Ghulam Muhammad last month said that the company, although a private limited entity, was akin to a government firm. He emphasized that the rest houses were previously underutilised, and their development into income-generating sources is crucial for the region, which is battling a financial crunch. He clarified that the company was bound to provide rent whether it was making a profit or not.