The Economic Coordination Committee (ECC) has approved the draft Transaction Advisory Agreement reached with the International Finance Corporation for outsourcing three airports.
Today’s Economic Coordination Committee (ECC) meeting was presided over by Finance Minister Ishaq Dar.
According to the information provided, the Public-Private Partnership Act of 2017 allows for the outsourcing of three airports to attract private investors through a competitive and transparent process to manage the airports, develop associated land assets, improve avenues for commercial activities, and maximize revenue potential. Radio Pakistan reported on this.
Govt speeds up outsourcing of Islamabad airport
An approved transaction advisor is the International Finance Corporation, a unit of the World Bank Group.
The federal government established an eight-person group in January to start the process of outsourcing Pakistan’s three main airports, Islamabad, Karachi, and Lahore.
According to the details, The committee would be directed by Khaqan Murtaza, director-general of the Civil Aviation Authority (CAA).
In this connection, the committee has written a letter to managers of all three major airports, directing them to provide data to the airports’ aviation ministry.
PM Shehbaz orders initiating outsourcing of three major airports
The letter stated that the committee would also collect information from all directorate branches of three airports.
CAA issues clarification
The Pakistan Civil Aviation Authority (PCAA) further explained that, rather than privatizing the country’s airports, the authorities had started the outsourcing process.
The media claims regarding the privatization of the airports, according to the PCAA spokesperson, are untrue. To make traveling easier for citizens, the government intended to upgrade the nation’s airports to meet international standards.
In addition, it stated that giving the best services to travelers at airports was the goal of outsourcing airports. According to the PCAA, the outsourcing procedure will be built around open auctions.
According to the source, the government has decided to prefer friendly countries when outsourcing airports. According to sources, “the firms from Saudi Arabia, the United Arab Emirates, Qatar, China, and Turkey will be invited on preferential terms.”
According to sources quoting the Planning Division, outsourcing airports will bring in between $250 million and $300 million for the whole country each year.
According to reports, the government will hire a contractor to manage airports for 25 years. Airport terminal services, parking, airport storage, cargo processing, and cleaning will all be outsourced under the terms of the deal, according to sources.
Civil aviation will keep airport security and air traffic control with it. The CAA earns Rs 30 bln per annum from the three largest airports in the country, sources added.
