ISLAMABAD: On Friday, Aviation Minister Khawaja Saad Rafique declared during the National Assembly session that the Islamabad Airport will be outsourced for a duration of 15 years.
The Minister clarified that navigational services and runway operations would not be outsourced, and the CAA will continue to handle them. The International Finance Corporation (IFC), a World Bank offshoot, is advising the government on this matter.
Efforts to outsource airports began in March, with the government initially planning to outsource only Islamabad Airport. The CAA confirmed that outsourcing was underway during an NA panel meeting.
The Minister mentioned that 12-13 companies have expressed interest, and competitive bidding will take place. He assured lawmakers that his team strictly follows public procurement rules and operates under the authority’s private-public partnership rules.
He emphasized that implementing the best international practices would be a priority in Pakistan’s first outsourced airport. Afterward, his team will also outsource airports in Lahore and Karachi.
The Minister highlighted that many countries worldwide have successfully outsourced airport operations, including India, Istanbul, and Madinah. He urged Pakistan to embrace modern practices rather than remaining in the stone age.
Rafique emphasized that outsourcing does not imply selling or mortgaging the airport, nor will it result in job losses. He assured that no employee at Islamabad Airport will lose their job, and he will protect job security and salaries as per the law.
Privatizing PIA to Address Financial Challenges
Regarding PIA, the aviation minister advocated for privatizing the national flag carrier due to its staggering deficit of Rs80 billion this year, which could reach Rs259 billion by 2030. He compared it to South African Airlines and Air India. Private sector involvement transformed these airlines while safeguarding employees’ rights.
He proposed the creation of a holding company for PIA. This comes considering its Rs742 billion liabilities and the need for significant investment to modernize the operational fleet of 27-28 planes.
He warned that without restructuring, PIA could face closure within the next 1-1.5 years. He expressed confidence that privatization, based on merit, could lead to PIA’s profitability with private sector involvement while safeguarding employee rights.
PIA to Resume Flights to the UK
In addition, the aviation minister shares that after “historic” legislation, the last obstacle for resuming flights to the UK has been cleared. Criticizing his predecessor’s statements, he stated that flights to the UK would resume within the next three months.
The resumption of flights to the EU and America will follow, providing good news for overseas Pakistanis.
