Pakistan Begins Outsourcing Airports As Cash Crunch Bites

An undated image of Islamabad International Airport. — AFP/File

The Economic Coordination Commission (ECC) on Thursday started the outsourcing of three airports in Pakistan.

According to a statement issued by the Ministry of Finance, a committee headed by Finance Minister Ishaq Dar has examined the partnership of the International Finance Corporation (IFC), a division of the World Bank, with the Ministry of Aviation. Group - as a transaction consultant for three airport outsourcing companies.

To attract foreign direct investment and provide world-class facilities to passengers, the coalition last December decided to bring in an international operator to manage three major airports in Islamabad, Lahore and Karachi.

The exported airports are Jinnah International Airport in Karachi, Allama Iqbal International Airport Lahore and Islamabad International Airport.

The commission, chaired by Finance Minister Ishaq Dar, has started the outsourcing of three airports under the Public-Private Partnership Act 2017 and has attracted private investors/airport operators through a competitive and transparent process for airport management and development. Identifying land resources, expanding business activities and achieving full income potential.

After detailed discussion, the European Council approved the draft Trade Advisory Agreement (TASA) on the outsourcing of three airports agreed by Pakistan Civil Aviation Authority (PCAA) with IFC.

Please note that no partnership details or agreements of any kind have been officially announced.

Prime Minister Shabazz Sharif visited Doha late last year to boost Qatar's investment in the country's energy and aviation sectors, and Qatari investment institutions pledged to invest $3 billion in Pakistan.

Islamabad has been in talks with Doha for months as part of efforts to secure foreign investment in the country of 220 million people.

Pakistan's aviation industry lost about 400 billion pounds and the country's flag carrier.

The country is facing a severe payment crisis as the central bank's reserves are low, covering four weeks of imports.

The net foreign exchange reserves of commercial banks are $5.6 billion, which is $1.3 billion more than SBP, bringing the country's total cash reserves to $9.8 billion.