Official breakdown of Pakistani airports outsourcing revealed

ISLAMABAD – The Advisor to the Prime Minister Air Marshal (retd) Farhat Hussain Khan has detailed the complete plan to outsource the airports in the country.

Speaking on the floor of the Senate on Tuesday, the Advisor explained that initially Islamabad International Airport would be outsourced for 15 years while the decision for airports in Karachi and Islamabad would be made later.

The advisor clarified that only the operation and management of specific airport components would be outsourced, while crucial services such as the Air Traffic Control Tower, Rescue and fire Fighting Services and Air Navigation services would remain under the control of the Pakistan Civil Aviation Authority.

The advisor told the lawmakers that a Transaction Advisory Services Agreement (TASA) had been inked between the Pakistan Civil Aviation Authority and the International Finance Corporation (IFC) to outsource the operations of Allama Iqbal International Airport Lahore, Jinnah International Airport Karachi and the Islamabad International Airport.

The official highlighted that the airports in Karachi and Lahore would also be outsourced but the decision in this regard would be made based on a study by the International Finance Corporation (IFC) which would act as a transactional advisor for the outsourcing of airports.

The advisor said that the successful bidder for Islamabad International Airport will be disclosed after the bidding process is completed, adding that the award of a concession for outsourcing is expected to be completed before June 2024.

He said that the successful bidder would have to pay an initial amount worth $100 million and a percentage of revenue earned from the airport for the Islamabad airport while for other airports, the decision would be made based on the study by IFC.

It is to be mentioned that besides the airports, the caretaker regime is also moving forward on the plan to privatise the state-owned Pakistan International Airlines for which a consultant has also been hired.