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Money-hungry Pakistan has been pushed to outsource the operations of the Islamabad International Airport, according to a report in the Pakistani newspaper. dawn.
The daily reported, quoting sources, that Ishaq Dar, the finance minister in the government led by Shahbaz Sharif, asked the stakeholders to finalize the formal procedures for outsourcing by August 12. Dar chaired the steering committee meeting to assess the progress of the outsourcing process on Saturday, and directed the completion of the procedures on a priority basis, according to the report.
It is worth noting that the decision comes before the end of the current government’s term and the dissolution of the National Assembly on August 13.
Moreover, in the meeting held on Saturday, the Finance Minister directed the concerned departments to finalize the amendments to the Civil Aviation Laws and formulate a plan to restructure Pakistan International Airlines (PIA) by the end of this month. Changes in the law aim to separate the functions of the Pakistan Civil Aviation Authority, the PIA, and the Airport Security Force, to eliminate overlapping responsibilities.
An official announcement made after the meeting said that the World Bank’s International Finance Corporation (IFC), the outsourcing transaction advisor, had briefed the meeting on the roadmap for the operation.
according to dawnThe Pakistan Economic Coordination Commission has decided to start the 25-year outsourcing of ground operations and assets at Islamabad, Lahore and Karachi airports on March 31. The operations of these centers will be managed in a partnership between the public and private sectors to enhance foreign exchange.
The country, which is grappling with a severe balance of payments crisis and declining foreign exchange reserves, secured a $3 billion bailout from the International Monetary Fund last week. The Standby Credit Agreement (SBA) will make the total amount available to Pakistan, spread over nine months.
“The new Standby Arrangement (SBA) will support the authorities’ immediate efforts to stabilize the economy… (and) it will also create space for social and development spending by improving domestic revenue mobilization and carefully executing spending,” said the IMF. press release.
Despite the larger-than-expected IMF bailout, the agreement stressed that Pakistan should continue to mobilize bilateral and multilateral financial support. Pakistan needs $22 billion to fund external payment obligations, including international debt service, in fiscal year 2024, according to a report by Reuters news agency.
(With inputs from Dawn and Reuters)
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