ISLAMABAD: The Cabinet Committee on Privatisation (CCoP) headed by the Deputy Prime Minister/ Foreign Minister, Senator Ishaq Dar has postponed inclusion of three major airports in the active list of entities which are on the active list of privatisation.
The Committee decided that Privatisation Commission will write to UAE’s Abu Dhabi Group to seek its final view on the proposed transaction of Islamabad Airport on G2G basis till next Friday.
“If UAE’s party will not respond, then PC will be given go ahead to offer the three airports on open bidding basis,” the sources added.
Pakistan Airports Authority (PAA) intends to undertake the outsourcing of operations of three major airports in the country, namely Islamabad International Airport, Jinnah International Airport, Karachi, and Allama Iqbal International Airport, Lahore. The objective of this initiative is to enhance the quality of airport services, ensure efficient management, and attract private sector investment and expertise in line with international best practices.
The scope of outsourcing covers the landside and apron areas of each airport. (i) the landside refers to the portion of the airport accessible to the general public, including passenger terminals, parking areas, retail and commercial facilities, and other non-restricted zones;(ii) the apron is the area of the airport where aircrafts are parked, loaded or unloaded, refueled, and boarded. It supports ground handling and aircraft servicing operations ;(iii) the airside, on the other hand, comprises the runways, taxiways, and other critical operational zones directly related to aircraft take-offs and landings. Due to security and regulatory sensitivities, this area shall remain under the exclusive jurisdiction of the State authorities.
The initiative is also expected to increase revenue generation and optimize assets utilization. This approach is aligned with the Government of Pakistan’s broader policy framework to promote public-private collaboration for sustainable infrastructure development and improved public service delivery.
Earlier, the PAA initiated the process of outsourcing operations of Islamabad International Airport under the Public Private Partnership Authority (P3A) framework and engaged the International Finance Corporation (IFC), a member of the World Bank Group, as the Financial Adviser for the transaction. Upon completion of the requisite due processes, a Request for Proposal (RFP) was issued in accordance with the Public Procurement Regulatory Authority (PPRA) framework.
Subsequently, the transaction is now being considered under the Inter-Governmental Commercial Transactions Act, 2022. The outsourcing of the remaining two airports – Jinnah International Airport, Karachi, and Allama Iqbal International Airport, Lahore- is currently at the preliminary stage.
Pursuant to the directions of the Prime Minister during high-level meetings, the Adviser to the Prime Minister on Privatisation convened a series of sessions to review the outsourcing process being undertaken by the PAA, which functions under the administrative control of the Ministry of Defence. These meetings were attended by senior officers from the Ministry of Defence and the PAA, wherein various options and scenarios were deliberated upon as possible courses of action. In light of the Prime Minister’s instructions to fast-track the outsourcing process and the urgency attached to the matter, it has been considered appropriate to include the outsourcing transactions of all three airports in the active privatisation list.
The draft summary was circulated to Ministry of Defence (the line Ministry of PAA) for views and comments. In response, it has recommended to include the outsourcing transaction of all three airports in the active privatisation list.
Pursuant to the aforesaid, the matter was placed before the Privatisation Commission (PC) Board for consideration. The Board deliberated on the recommendations of the Ministry of Defence and endorsed the proposal to include the outsourcing transactions of all three airports in the active privatisation list, subject to the approval of the Cabinet Committee on Privatisation (CCoP).
Forgoing in view, the Cabinet Committee on Privatisation considered and accord its approval to include the outsourcing transactions of all three airports in the active privatisation list, in line with the recommendations of the Privatisation Commission Board and the Ministry of Defence. Ends
