ISLAMABAD: State Minister for Finance Aisha Ghaus Pasha on Thursday announced that public-owned companies of Qatar plan will run Islamabad and Karachi airports as per an understanding reached between the Gulf country and Pakistan Prime Minister Shehbaz Sharif’s visit to Qatar.
Pasha said that the government is unable to run the public-owned companies whereas profitable public companies are also suffering losses. “It is important to privatize them to maintain them as profitable institutions,” she said, adding that Qatar has expressed interest in investing in Pakistan.
She lamented that the power sector was given more funds than defense during the last fiscal year due to circular debt in the sector.
Earlier on Wednesday, it was reported that the Qatar Investment Authority (QIA) aims to invest $3 billion in Pakistan.
Pakistan is in economic turmoil and faces a balance of payments crisis, with foreign reserves having dropped to as low as $7.8 billion, barely enough for more than a month of imports. It is also contending with a widening current account deficit, weakening rupee currency, and inflation that exceeded 24% in July.
“The Qatar Investment Authority has announced its aspiration to invest $3 billion in various commercial and investment sectors in the Islamic Republic of Pakistan,” the Emiri Diwan said, without giving further details.
The announcement was made during a visit to Doha by Pakistan Prime Minister Shehbaz Sharif, who held official talks with Qatari Emir Sheikh Tamim bin Hamad al-Thani on Wednesday after a meeting with the QIA on Tuesday.
Doha has shown interest in airport management partnership and the Roosevelt Hotel in New York’s Manhattan owned by the Pakistan International Airlines, two Pakistani aviation officials involved in the talks.
The officials said Pakistan has offered a 25% stake in the hotel. It shut down in late 2020 during the slump in travel caused by the coronavirus pandemic and has remained closed, in part due to lack of financing and management disputes.
“Qatar has shown interest in taking over terminal and cargo services at Islamabad airport,” one of the officials said, adding other airports, such as Karachi, could also be considered later on.
Foreign reserves in Pakistan have fallen to as low as $7.8 billion, which is barely enough to cover more than a month’s worth of imports. Pakistan’s economy is in disarray, and the country is facing a crisis in its balance of payments.