Pakistan to outsource its three key airports, rules out privatisation
Three main airports of Pakistan would be outsourced, the railways and aviation minister said. He clarified that there would not be any privatisation amid “poisonous propaganda” being run against the country.
“Not a single inch is being sold,” Khawaja Saad Rafique said as he announced the government’s decision in a press conference on Sunday.
Prime Minister Shehbaz Sharif gave a go-ahead for the outsourcing of Jinnah International Airport Karachi, Allama Iqbal International Airport Lahore, and Islamabad International Airport under the public-private partnership on December 30, 2022. He had revived the decision taken by the government of his PML-N in 2017.
The operations of the three important airports would be outsourced for a certain time period. For this purpose, the same model was implemented that was being followed all over the world.
Rafique said London’s Heathrow and Gateway and Paris Charles de Gaulle Airport are among many airports of the world that have been outsourced. They brought their best investment because expertise has advanced, he said, adding: “We are trying to bring that same model here. This should have happened before we started this on a war footing.”
The International Finance Corporation, a subsidiary body of the World Bank that provides consultancy, facilitated the government in the process. The government has started working on it.
“All ministries concerned are on board and we are working together with the Public Private Partnership Authority.”
Rafique explained that the best operators would arrive in Pakistan, adding that the airline would be run as per international practice.
“We can do G2G, but our ministry decided to follow competitive bidding and all operators will come here. The government has offered Qatar, maybe UAE will also get an offer,” he said.
The minister added that the country would get an upfront amount and foreign direct investment (FDI) from such an approach. “They will return after a certain period and hand over to us everything and the government of the time will make further decisions.”
Rafique was of the view that reforms could be brought into the Pakistan International Airlines, however, it would take time.
“It needs seriousness and consistency. If Europe and UK routes of PIA are opened, for which we are trying very hard, the operational cost and debt servicing will be met.”
When asked about the progress on the Mainline-I (ML-I) project, he said that China has agreed to support the huge project. He added that the government was looking to make the high cost of the project “reasonable”.
“Hydraulic studies will be again conducted due to floods and the most crucial area is in Sindh. We will try to start work on the most affected area. The process is under way.”
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