August 25, 2010
Michael Chapnick | (703) 875-4357


U.S. Ambassador to Pakistan Anne W. Patterson (left); PIA Managing Director Captain Muhammad Ajaz Haroon, (center); and PIA Deputy Managing Director M. Salim Hayani, (right).
U.S. Ambassador to Pakistan Anne W. Patterson (left); PIA Managing Director Captain Muhammad Ajaz Haroon, (center); and PIA Deputy Managing Director M. Salim Hayani, (right).

KARACHI, PAKISTAN – In order to enter the growing aviation maintenance, repair, and overhaul (MRO) market, Pakistan International Airlines (PIA) is partnering with the U.S. Trade and Development Agency to expand its pre-existing facility. USTDA's grant for nearly $1 million that was awarded today will help establish PIA’s facility as a comprehensive operation that services engines, landing gear, airframes, and aircraft components for domestic and foreign carriers. The project offers an opportunity to many U.S. small and medium-sized businesses that are interested in expanding to South Asia.

The outcomes of the USTDA-funded feasibility study are expected to include a market assessment, business plan, a set of technical requirements and training needs, and cost estimates to expand the MRO facility. With its pool of qualified engineers, PIA will have a regionally competitive MRO facility in an industry that is expected to grow over the next decade.

This feasibility study, funded by the $864,000 grant, helps fulfill USTDA's intention to promote cooperation in the transportation sector in Pakistan, as enumerated in the Regional Infrastructure and Trade Cooperation Memorandum of Understanding that USTDA signed with Pakistan and Afghanistan in 2009.

During the grant signing ceremony at the U.S. Embassy in Islamabad, Ambassador Anne W. Patterson, who signed on behalf of USTDA, said that the project would promote cooperation in Pakistan's transportation sector and further the U.S. commitment to broad-based economic development. The grant was signed by Managing Director Captain Muhammad Ajaz Haroon on behalf of Pakistan International Airlines.

"This USTDA grant will lead to more advanced and a greater number of jobs for U.S. workers as a result of the study's training component," added USTDA Director Leocadia I. Zak from Washington. "This effort also reinforces our commitment to the critical transportation sector that I was pleased to announce in Karachi during the U.S.-Pakistan Strategic Dialogue."

The MRO global market exceeds $50 billion, including $15 billion in equipment and services provided by U.S. companies to MRO facilities worldwide. PIA will use USTDA funding to compete in the growing MRO market Asia which exceeds $9 billion.

The opportunity to conduct the USTDA-funded technical assistance will be competed on the Federal Business Opportunities (FBO) website. A link to the FBO announcement will be posted to USTDA's website at Interested U.S. firms should submit proposals according to the instructions in the FBO announcement. Pakistan International Airlines will select the U.S. contractor that will complete the technical assistance.

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The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries. The agency funds technical assistance, feasibility studies, training, reverse trade missions and business workshops to support development of modern infrastructure and a fair and open trading environment. USTDA's efforts create an enabling environment for trade, investment and sustainable economic development.

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