ISLAMABAD: In order to improve dwindling foreign exchange reserves, government approved draft regarding outsourcing three airports in Pakistan and also decided to make International Finance Corporation (IFC) transaction adviser. Economic Coordination Committee according to statement issued by Finance Division considered summary of Ministry of Aviation on engagement of IFC, part of World Bank Group as transaction advisor for outsourcing of three airports.

In December last year, coalition government decided to engage international operators to help run three major airports of Islamabad, Lahore and Karachi with view to attracting direct foreign investment and providing world-class facilities to passengers. Airports that will be outsourced include Jinnah International Airport Karachi, Allama Iqbal International Airport Lahore and Islamabad International Airport.

Committee under chair of Finance Minister Ishaq Dar kick-started outsourcing process of three airports within scope of Public-Private Partnership Act-2017 to engage private investors/airport operators through competitive and transparent process to run airports, develop appertaining land assets and enhance avenues for commercial activities and to garner full revenue potential. ECC, after detailed discussion, approved draft Transaction Advisory Agreement reached with IFC by Pakistan Civil Aviation Authority for outsourcing of three airports. It should be noted that no details of partnership, or any agreement have been made official.

Pakistan, however, has been in talks with Qatar to jointly run terminals at Islamabad, Karachi and Lahore airports, Reuters reported citing officials.

Published in The Daily National Courier, March, 31 2023

Like Business on Facebook, follow @DailyNCourier on Twitter to stay informed and join in the conversation.