The process of privatizing Hajj in Pakistan started from Hajj-2005, when selection of Hajj Tour Operators was made purely on merit, strictly observing the laid down criteria of having at least three years experience in providing services to Hajjis. Unfortunately, this criterion could not be followed during subsequent years. As a result, Travel Agents and other private persons, having no experience of Hajj jumped into this field. In the absence of a regulatory mechanism, they started charging heavy profit from Hajjis. This attracted a large number of people towards this business. Last year, the number of applications for grant of license was around 2,200 which is likely to further increase this year. Hajj Tour Operators are earning huge profit without any check. Sometimes, this profit margin goes up to Rs. 30,000/- per Hajji. The craze of people to get license for organizing Hajj Groups has become a nuisance for the Government. Ministry of Religious Affairs is facing tremendous pressure from Parliamentarians, Military Officers and Bureaucrats in this respect. This flood needs to be stopped.
The main issues leading to the above complex situation can be summarized as follows:-
a) Privatization of Hajj was made in haste. Nobody at that time thought that a strong and perfect regulatory mechanism is always a pre-requisite for privatization. Hence Hajj Tour Operators are earning huge profit as there is no law for taking action against them.
b) During first year of privatization, selection of Tour Operators was made purely on merit after prescribing a criteria (i.e. at least 3 years experience of providing Hajj services), which was strictly adhered to for Hajj-2005. Thus they provided services to Hajjis in all seriousness, although they earned a lot of profit also.
c) During Hajj-2006, Travel Agents (with no experience of Hajj) were included in the list of Hajj Tour Operators. During Hajj-December 2006, even those who had no experience of running travel agencies were also approved. Thus most of them sold their quota to others and many of them failed to provide services to their Hajjis.
d) During Hajj 2007, a few more inexperienced Tour Operators were added to the list. Those who could not get quota went to the High Court and Supreme Court where litigation is going on.
e) M/o. Religious Affairs is now in a fix and does not know how to proceed further for Hajj- 2008. A large number of new entrants are eagerly waiting for submitting applications for new license. Tremendous pressure is building up on Ministry of Religious Affairs from Parliamentarians and senior military officers for grant of quota to new entrants. In case Ministry reopens the issue and grants new licenses, it will open a Pandora's Box and it would become impossible to stop this flood of inexperienced tour operators.
The main issues leading to the above complex situation can be summarized as follows:-
a) Privatization of Hajj was made in haste. Nobody at that time thought that a strong and perfect regulatory mechanism is always a pre-requisite for privatization. Hence Hajj Tour Operators are earning huge profit as there is no law for taking action against them.
b) During first year of privatization, selection of Tour Operators was made purely on merit after prescribing a criteria (i.e. at least 3 years experience of providing Hajj services), which was strictly adhered to for Hajj-2005. Thus they provided services to Hajjis in all seriousness, although they earned a lot of profit also.
c) During Hajj-2006, Travel Agents (with no experience of Hajj) were included in the list of Hajj Tour Operators. During Hajj-December 2006, even those who had no experience of running travel agencies were also approved. Thus most of them sold their quota to others and many of them failed to provide services to their Hajjis.
d) During Hajj 2007, a few more inexperienced Tour Operators were added to the list. Those who could not get quota went to the High Court and Supreme Court where litigation is going on.
e) M/o. Religious Affairs is now in a fix and does not know how to proceed further for Hajj- 2008. A large number of new entrants are eagerly waiting for submitting applications for new license. Tremendous pressure is building up on Ministry of Religious Affairs from Parliamentarians and senior military officers for grant of quota to new entrants. In case Ministry reopens the issue and grants new licenses, it will open a Pandora's Box and it would become impossible to stop this flood of inexperienced tour operators.
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