PAA seeks bids from local farmers for lease of 30
acres of land of Rahim Yar Khan Airport
The Pakistan
Airports Authority (PAA) has announced plans to lease out nearly 30 acres
of land at Sheikh
Zayed International Airport for agricultural use, including the site of the
airport's old runway.
According to a tender notice issued
on April 16, the authority is seeking bids from local farmers and agrarian
businesses to participate in an open auction for two distinct plots of land
within the airport's perimeter. The move is part of an effort to utilize idle
land assets for the upcoming 2026 Kharif crop season.
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Auction
Details and Land Allocation
The PAA has divided the available
land into two specific zones, each with its own auction date and reserved
pricing:
- The Old Runway Area:
Approximately 21 acres of
land are available at a reserved price of PKR 70,000 per acre per annum.
The auction for this plot is scheduled for May 13, 2026.
- Non-Directional Beacon (NDB) Station: A smaller, 8.75-acre
plot is being offered at a higher reserved price of PKR 135,000 per acre per annum.
This auction will take place on May
14, 2026.
Lease
Terms and Financial Growth
The successful bidders will secure
the land for an initial five-year term,
running from June 1, 2026, to May 31,
2031. To ensure the lease keeps pace with economic shifts, the agreement
includes a 5% annual increase in
the lease rate.
Furthermore, the PAA has indicated
that the lease may be extended for an additional five years upon mutual consent
at the end of the initial period.
Participation
Requirements
The PAA has outlined strict
participation criteria to ensure a transparent bidding process:
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- Bid Security:
Interested parties must submit a refundable security deposit of PKR 100,000 on the day of
the auction to be eligible to participate.
- Separate Bidding:
Each plot will be auctioned independently; bidders wishing to secure both
locations must participate in both sessions.
This initiative follows a growing
trend of utilizing buffer zones and decommissioned infrastructure at national
airports for productive agricultural use, providing a secondary revenue stream
for the aviation authority while supporting local farming communities.
Source:
Pakistan Airports Authority