Bhatta Ground contract emerges as major revenue source

RAWALPINDI: The Rawalpindi Cantonment Board has collected Rs115.4 million in the first phase of payments under the Bhatta Ground cattle market contract, while Rs30 million in income tax has also been deposited with the federal government, according to details reported on the agreement.

The contract for the operation of the 32-acre Bhatta Ground site, described as the country’s second-largest cattle market after Karachi, has been awarded to a consortium led by Haji Ismail & Co for Rs305 million. The arrangement covers both the annual Eidul Azha cattle market and the regular livestock market held every Tuesday and Wednesday during the year.

Payment schedule under the agreement

Under the terms of the deal, the cantonment board has already received an advance payment of Rs90 million in addition to the May instalment of Rs25.4 million, taking total first-phase collections to Rs115.4 million. Rs30 million in income tax on the full contract value was collected through the board and submitted to the federal government.

The contractor is required to pay Rs25.4 million to the Rawalpindi Cantonment Board every month between the 1st and 22nd. The board is set to continue receiving this amount each month over the year under the current contract terms.

Extension clause and future plan

In May 2027, the contract is to be automatically extended for one more year with a 10 per cent increase in value, which will raise the overall contract amount. Under the same arrangement, the contractor will also have to pay the applicable income tax on the revised value.

This framework will remain in place for three years, after which a fresh procedure for awarding the Bhatta Ground cattle market contract will be prepared in 2029.

Possible use of ground on non-market days

Separately, sources said the Rawalpindi Cantonment Board is considering using the venue on the remaining five days of the week, when the livestock market is not operating, for what could become the largest automobile trading fair in Rawalpindi and Islamabad. Officials believe the proposed car market could provide the board with another significant source of revenue.