Islamabad Airport will be managed by an external party for 15 years, according to the Aviation Minister

The Adviser to the Prime Minister on Aviation, Air Marshal (retd) Farhat Hussain Khan, has confirmed that the Islamabad International Airport will undergo outsourcing for an initial period of 15 years to improve services for travelers. Khan disclosed during a parliamentary session that Karachi and Lahore airports are also slated for outsourcing based on a study conducted by the International Finance Corporation (IFC).

A Transaction Advisory Services Agreement (TASA) has been executed between the Pakistan Civil Aviation Authority and IFC, designating Islamabad International Airport as the first to be outsourced. The IFC, a subsidiary of the World Bank Group, will serve as a transactional advisor. The successful bidder for Islamabad Airport will be revealed following the bidding process, expected to conclude before June 2024.

It’s important to note that only the operation and management of specific airport components will be outsourced, while critical services will remain under the jurisdiction of the Pakistan Civil Aviation Authority. The selected bidder is required to make an initial payment and contribute a percentage of the airport’s revenue, including a one-time payment of $100 million. For other airports, the initial amount will be determined based on the findings of the IFC study.

The adviser also addressed the privatization of Pakistan International Airlines (PIA), emphasizing transparency throughout the process. PIA is slated for privatization as a flight entity, and decisions concerning its other assets will be made by the Privatization Commission. As of June 30, 2023, PIA recorded a net loss of Rs61.6 billion, with accumulated liabilities totaling Rs809 billion.

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