2019

Pakistan Civil Aviation Authority

Submitted by: Muhammad Ahtisham Arshad

From : University of Education, Multan

[INTERNSHIP REPORT ON FINANCE]

IN THE NAME OF ALLAH, THE MOST BENEFICENT, THE
MOST MERCIFUL:

FROM THE GLORIOUS QURAN

Or think you that you will enter Paradise

without such (trials) as came to those
who passed away before you? They were
afflicted with severe poverty and ailments
and were so shaken that even the
Messenger and those who believed along
with him said, “When (will come) the
Help of Allah?” Yes! Certainly, the Help
of Allah is near! Quran 2:214

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 Dedication:

To My Parents And
Teachers,

They are to me like a

Candle of affectionate and
Knowledge, Who melts
itself To Enlighten, the
world around; I will
always remain obedient to
them.

Thank you my esteemed

Parents & Teachers!

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 ACKNOWLEDGEMENT

All praises to almighty Allah who bestowed upon me the desired wisdom gratitude
and forbearance to accomplish a very demanding and challenging task.

Business environments are becoming more and more complex with the passage of
time. To understand and deal with such riddle phenomena, one needs a lot of
energy and knowledge. So business education has become an evolving science,
which helps to solve the business problems. Academic education provides general
knowledge about business decisions and policies.

This Internship – as an integral part of BBA (Hons) program, provides the

opportunity of peeping into real professional life of business people. It enables us
to evaluate and understand the practical application of all the terms & techniques
that we have studied during our course work.

The kind of data required for compiling this report is not only scattered but also
boundary less. The limits are undefined and one can include data as much one can.

I was assigned to complete my internship comprising practical work of 6-weeks,

at Multan International Airport, Multan. In this internship report I have tried my
level best to explain each and every significant aspect of functions and working of
CAA especially in the prospect of financial activities.

Under such operating enrolments it was well view impossible for me to accomplish
the assigned task without the timely appropriate and valuable guidance and support
of my honorable teachers and especially Mr. Abid Naeem Butt (Assistant director
finance) and Mr. Javed Akhter (Superintendent finance) also the staff that
provided the right direction which set the pace for initiating a reasonable report.

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DECLARATION:

I hereby declare that the work contained in the report written by

“Muhammad Ahtisham Arshad”
Roll No 6435
student of Bachelor of Business Administration has been carried out under the
supervision of “Sir Shahzad Sadiq ”.

Muhammad Ahtisham Arshad

Roll No 6435
BBA (Hons)
Session: 2015-2019

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Table of Contents
Introduction to Pakistan Civil Aviation Authority: ...................................................1
Historical Perspective: ...............................................................................................2
PCAA VISSION: .......................................................................................................3
PCAA MISSION: ......................................................................................................3
Core Values: ...............................................................................................................3
Organizational Structure of PCAA: ...........................................................................4
Organism of CAA: .....................................................................................................5
Regularity Services: ................................................................................................5
Air Navigation Services: .........................................................................................6
Airport Services: .....................................................................................................6
Supporting Directors and Departments: .................................................................7
Multan International Airport: .....................................................................................7
Introduction of Multan International Airport: ........................................................8
Structure of MIAP:.....................................................................................................8
Lounges: ..................................................................................................................8
Apron: .....................................................................................................................8
Airport Services: .....................................................................................................9
Ground Handling Agents: .......................................................................................9
Cargo Complex: ......................................................................................................9
Flying Schools/ Institutions: ...................................................................................9
Finance Department: ................................................................................................10
Internship Overview.................................................................................................10
Business Process of CAA: ....................................................................................10
Sources of Revenue:.................................................................................................11
Miscellaneous Revenue: .......................................................................................11
Disbursement Department: ......................................................................................12
Administration Expenses: ........................................................................................12
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Repair and Maintenance: .........................................................................................13
General Provident (GP) Fund: .................................................................................13
Refundable Advances: ..........................................................................................13
Non-Refundable Advances: ..................................................................................13
Conclusion: ..............................................................................................................14

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Introduction to Pakistan Civil Aviation Authority:

Pakistan Civil Aviation Authority is a public sector autonomous body, which

oversees and regulates all aspects of civil aviation in Pakistan. PCAA's head office
is situated in Terminal-1 of Jinnah International Airport in Karachi. PCAA is a
member state of the International Civil Aviation Organization. Nearly all civilian
airports in Pakistan are owned and operated by the PCAA.

Pakistan Civil Aviation Authority (PCAA) is a public sector autonomous body

working under the Federal Government of Pakistan through Aviation Division
Cabinet Secretariat. CAA was established on 7th December, 1982 through Pakistan
Civil Aviation Authority ordinance 1982. Prior to creation of CAA, a Civil
Aviation Department (CAD) in the Ministry of Defence (MoD) used to manage the
Civil Aviation related activities. Ministry of Defence (MoD) continued to be the
controlling Ministry even after creation of CAA on 7th December, 1982. However,
in June, 2013, Government of Pakistan assigned this responsibility to Cabinet
Secretariat (Aviation Division).

The purpose of establishing CAA is to provide for the promotion and regulations
of Civil Aviation activities and to develop an infrastructure for safe, efficient,
adequate, economical and properly coordinated Civil Air Transport Service in
Pakistan.

CAA not only plays the role of the aviation regulator of the country but at the same
time performs the service provider functions of Air Navigation Services and
Airport Services. The core functions of CAA are therefore, ‘Regulatory’, ‘Air
Navigation Services’ and ‘Airport Services’. These core functions are fully
supported by various corporate functions of the organization. The Headquarters of
CAA is located at Karachi.

Pakistan Civil Aviation Authority would continue to ensure distinct separation of

regulatory functions from the service provider functions, strengthen all the three
core functions and achieve, comply and exceed the requirements/standards set by
ICAO and International Management System Standards through continued focus
on the change process to enable achievement of the transformation as envisaged.

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Historical Perspective:

1982, With the formation of Pakistan Civil Aviation Authority, Administration

Directorate was responsible for the formulation and implementation of all policies
and procedures related to employees. Soon after the creation of CAA, task of
transformation of CAA from Department to Authority and formulation of Civil
Aviation Authority Orders related to employees were planned and successfully
achieved under the first Director Administration Air Cdre Sultan Muhammad.

GM Administration was responsible to look after all the administration & welfare
activities like managing MT Pool, stationary, meal arrangements for meetings,
maintenance of HQCAA and CAA houses, visa and passport arrangement for CAA
officials travelling abroad, managing CAA Schools, Idara-e-Hunar O Danish,
Scholarships grants to children of CAA Employees, Sports activities etc.

GM Personnel was responsible to manage employees’ affairs like management of

records, promotions, posting transfer, recruitment selection, ACR etc.

Later on, post of GM Employment was created who was solely responsible for the
Recruitment & Selection of employees and the first charge was given to Mr. Abdul
Hameed.

Training function of CAA was performed by GM Training who was under direct
Control of Director General CAA. At the time of establishment of CAA, the charge
of GM Training was given to Wing Commander M.M.H Rana.

1989, The post of Dy. DG CAA was established and GM Training came under his
direct control.

2006, With the re-structuring of CAA, the transformation of Administration

Directorate to Human Resource Directorate was carried out. Brig (R) Zafar
Mehmood was the last Director Administration of CAA. The nomenclature of
Director Administration was changed to Chief Human Resource. Mr. Kashif Ali
Hashmi was hired from the market and was deployed as the first Chief HR.
Training & Development was then made part of the Human Resource Directorate.
The roles and responsibilities of GM Personnel were divided into GM Officers
Record, GM Staff Record & GM System Development (which managed the
promotions & ACR of employees). Posts of GM Employment & GM Admin were
renamed as GM Recruitment & Selection & GM Business Support, respectively.

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PCAA VISSION:

"Be a world-class service provider in the aviation industry”

PCAA MISSION:

“Provide safe, secure and efficient best-in-class aviation services to the

stakeholders”.

Core Values:

 Commitment
 Professional Excellence
 Customer Focus
 Safety and Security
 Integrity

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Organizational Structure of PCAA:

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Organism of CAA:

Regularity Services:

 To ensure Airworthiness and safety of Aircraft, equipment and

implementation of engineering procedures in the light of ICAO
recommendations through Directorate of Airworthiness.
 Air Services Agreements and Aviation policy framing for the promotion of
aviation activities in the country through AT (Air Transport) Directorate.
 To check flight standards and ensure adherence to recommendations of
ICAO by all the airlines, helicopters and chartered services in the country
through Directorate of Flight Standards.
 To ensure implementation of Safety Management System (SMS), Air Traffic
Management (ATM) and Aerodrome certification in the light of procedures
as recommended by ICAO
 To ensure proper functioning of Aero-medical and licensing branch.
 Ensure coordination with Air Navigation Services (ANS) and Airport
Services for slot allocation and frequencies of flights.

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Air Navigation Services:

 Ensure safety and security of aircrafts and passengers at airside.

 Ensure safe and properly coordinated Air Traffic Services in the country’s
airspace including operations of radars and Control Towers.
 Ensure provision of efficient and effective Fire and Rescue Services.
 Ensure implementation of SMS / ATM procedures as recommended by
ICAO regulations.
 Ensure handling of emergencies like hijacking, bomb threats, weather
warnings and aircraft technical eventualities.

Airport Services:

 Provide world class facilities and handling of passengers at airports.

 Develop working spirit with all the agencies working at airports.
 Up-keep of all Lounges and entire Land-side at airports.
 Obtain certification from regulators as required under ICAO rules and
regulations.
 Enhance revenue generation through smart and innovative commercial and
retail management at airports.
 Assist, monitor and ensure provision of world class facilities pretaining to
Cargo services and continuous development in the vital element of
facilitation of exporters and importers.
 Coordination with respective Head of support functions to deploy efficient
manpower for smooth operations at airports. Raise monthly reports on level
and standard of support services being provided at the airport.
 Analyze and suggest plans for outsourcing of activities at airports, if not
provided efficiently by CAA’s own support functions.

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Supporting Directors and Departments:

 Ensure maintenance, repair and replacement of civil, electrical, mechanical

and electronics equipments and facilities installed at airports and other CAA
offices / properties and coordinate with Regulatory, Air Navigation and
Airport services for their operational requirements.
 Post efficient and adequate number of technical manpower at locations
according to workload and operations.
 Empower and delegate financial and administrative powers to people posted
at locations in order to encourage on-spot decision making and decentralized
mode of working.
 Demand annual budgets and allocate to locations based on their
requirements.
 Ensure implementation of modern supply chain management and logistics
support enabled with help of Enterprise Resource Planning (ERP).
 Ensure planning and development of projects in future and utilize research
and development branch for latest developments.

Multan International Airport:

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Introduction of Multan International Airport:

The airport caters both International & Domestic flights. It is situated 4 km West of
the city. Multan is also known as Madinat-ul-Auliya - ‫ مدینة االؤلياء‬because of the
large number of shrines and Sufi saints from the city. Naturally, the prime
attractions are the mausoleums of Sufi saints. It is blanketed with bazaars,
mosques, shrines, and ornate tombs. The city is famous for its handicrafts (carpets
& ceramics) and cottage industries. Multan is also an important agricultural centre.
Multan features an arid climate with very hot summers and mild winters. Local
rickshaws and taxi cabs connect the airport to the city. A few moderate to cheap
hotels are available. The Airport operates nonstop round the clock, 7 days a week.

Structure of MIAP:
Multan International Airport is fitted with all the essentials for domestic and
international flights with the inauguration of the new terminal. The information
below is correct as of April 2016.

Lounges:

 One business class lounge for premium passengers.

 One domestic economy class lounge.
 One international economy class lounge.
 One CIP lounge for VVIP and foreign diplomats.
 Subway, Pizza Hut, Dunkin Donuts, refreshment and gift shops available
within lounge.
 Duty Free shops available at international arrivals & international departure
lounge.

Apron:

 Four boarding jet bridges (Bay-1, 2, 3 & 4).

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 Two wide-body & Four narrow-body aircraft nose in parking available.[17]
 Equipped with complete airfield lighting system

Airport Services:

 Pakistan State Oil provide fuel services to all airlines flying out of the airport.
(Jet A-100)
 Fire fighting and Rescue Services. ICAO Category-9.[19]
 FIDS systems located in the lounges and briefing concourses showing
television programs and flight information.
 Airport Mosque located outside the terminal on the right hand side.
 Airport Medical Centre located adjacent to CAA Mosque.
 Rent A Car facility and Metro Radio Cab Services.

Ground Handling Agents:

 Pakistan International Airlines.

 Shaheen Airport Services (SAPS).
 Airblue Ltd.
 Royal Airport Services (RAS

Cargo Complex:

 Cargo/Freight Services provided by Pakistan International Airlines, booking

can be made at PIA Booking Office located at Abdali Road or Airport Cargo
Office.
 International Cargo/Freight Service provided by Emirates as their every flight
can carry up to 23 tonnes of cargo which helps local exporters to send their
cargo to any of 78 countries in the world where Emirates airline operates.

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Finance Department:

Finance directorate is responsible for all financial and fiscal management aspects
of CAA operations .It provides coordination in the administrative, business
planning, accounting and budgeting efforts of the organization which includes
collection and control of all revenue, Aeronautical and Non-Aeronautical Billing,
Disbursement of Current & Development Expenditure, Rendering financial advice
to Management and financial concurrence of proposed expenditure, Coordination
in preparation and implementation of Annual Development programme.
Preparation of Financial Statements on Quarterly, Half yearly and on Annual
Basis. Providing IT support to whole organization. Implementation of Enterprise
Resource Planning (ERP) in CAA.

The Finance Directorate is headed by the Chief Financial Officer (CFO) that is
directly report to the DGCAA.

Internship Overview

Business Process of CAA:

CAA is generating profits from two sources:

1. Revenue which is collected directly from airline services called aeronautical

revenue.
2. Revenue which is indirectly collected by different operations and agencies
called non-aeronautical revenue.

CAA spends money on different expenditures such as salaries, repair and

maintenance, etc.

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Sources of Revenue:

CAA divides revenue into three main heads and further into minor or sub accounts
which are given below:

1. Aeronautical Revenue:
 Route navigation charges
 Landing and housing / Ground handling charges
 Porter service charges
 Power supply charges

2. Non-Aeronautical Revenue:

 Government department / Agencies concession

 Airline concessions
 Apron Driving licensing fee from various Airlines.
 Apron vehicle permit fee from various Airlines.
 Commercial concessions (parking tender fee earned, hotels, canteen rent etc)
 Advertisement
 Cargo throughput
 Return on bank deposits

Miscellaneous Revenue:

 Fines / Penalties
 Wrong car parking charges
 Tender application fee
 Other miscellaneous charges

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Disbursement Department:

Disbursement means “To Distribute”, so disbursement branch deals with the

procedures of making payments to employees of salary allowances and other
benefits.

 Payroll Payment
 Payroll Adjustment
 Casual workers

It also deals with the procurement procedures, which is to be made through the
administration branch. The administration branch deals with the procurement of
furniture and furnishing, medical store and purchase of stationary for the authority.

Following are the core responsibilities which are performed by disbursement

department:

1. Financial concurrence
2. Issue of policies regarding disbursement, funds, salaries, allowances
3. Payment of bills / invoices
4. Record of disbursement & returns
5. Remittances
6. Salary / GP fund & Pension payments

Administration Expenses:
Administration Expenses are given bellow

 Salaries allowance and benefit

 Traveling and conveyance
 Training
 Telephone
 Electricity
 Audit fee
 Horticulture

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Repair and Maintenance:
 Building
 Plant and equipment
 Airplanes calibration
 Furniture and fixture
 Other fixed assets
 Vehicle

General Provident (GP) Fund:

A general provident fund is a form of social safety net into which workers must
contribute a portion of their salaries and employers must contribute on behalf of
their workers. The money in the fund is then paid out to retirees or in some case it
is also given to the employee, if they want.

On that contribution CAA invest it to the bank that have A+ ratings and higher bid
and the return on that investment will add on employees account. The interest /
profit rate for each financial year is announced by the government. If employee
wants this money before retirement, then there are two types of advances through
which this fund would be given to employees:

 Refundable Advances
 Non-Refundable Advances

Refundable Advances:
It’s a temporary advance can be taken from the General Provident Fund (GPF) and
employee will return it to the employer and its add back in his G.P Fund.

Non-Refundable Advances:

Its non-refundable and employee wouldn’t return it to the employer.

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Conclusion:

As an internee in CAA the main focus of my internship was on Finance

Department. In which included all the concerned sections (Billing, Cash
Disbursement and G.P Fund) in these departments I have learned the Payment of
bills/invoices, Record of disbursement, GP Fund payment.

In my six weeks internship program I observe that the flow of work is very
professional and up to date and atmosphere is very friendly and there is no
difference between officers and staff. Everybody is so corporative and helpful.
During my time at the CAA, I was involved in a lot of different tasks of
office work. I also worked on Oracle (ERP).

 Work with the finance team

 Manage the monthly tracking
 Support the payment processing team
 Data entry

My internship at the CAA was an outstanding experience. I got a deep and

inspiring insight in the work of CAA Pakistan, but as well as the other friendly and
cooperative staff members took a lot of effort to make it a helpful visit for me in
every way.

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