According to a report by Dawn, the Government of Pakistan is actively promoting the outsourcing of major airports’ operations due to the continuous decline of forex reserves. The finance minister has been leading a committee tasked with engaging foreign operators for the outsourcing initiative, and multiple meetings have already taken place.
As quoted by sources, Finance Minister Ishaq Dar has instructed stakeholders to complete the necessary formalities for outsourcing the operations of Islamabad International Airport (IIA) by August 12, the last day of the current government’s term. The minister recently chaired a meeting to assess the progress of airport operations outsourcing, with a particular focus on expediting the outsourcing of IIA to enhance service delivery according to industry best practices.
The World Bank’s International Finance Corporation (IFC), serving as the transaction adviser, presented the progress of the outsourcing project during the meeting. In March 2023, the Economic Coordination Committee approved a 25-year outsourcing plan for Islamabad, Lahore, and Karachi airports, aiming to generate foreign exchange through a public-private partnership involving the management of operations and land assets.
Additionally, during the recent meeting, Finance Minister Dar set a deadline for relevant departments to finalize amendments to civil aviation laws and develop a restructuring plan for Pakistan International Airlines (PIA). These amendments seek to clarify the roles of the Pakistan Civil Aviation Authority, PIA, and Airports Security Force, eliminating any overlapping responsibilities through the enactment of ordinances.
It is crucial to have the amendments approved by parliament before the end of July to allow global aviation regulators to conduct on-site inspections in August, assessing the operational systems and standards necessary to restore PIA’s flights to the US, UK, and Europe. Failure to meet this deadline would result in a one-year delay before inspections can occur.
The meeting, chaired by the finance minister, was attended by several officials, including the Federal Minister for Aviation and Railways, the Special Assistant to the Prime Minister on Finance, the Aviation Division secretary, the CEO of the Public Private Partnership Authority, the director general of the Pakistan Civil Aviation Authority, representatives from the IFC, and other government officials.
