Govt rules out airport privatisation, plans outsourcing of Islamabad operations

The federal government has ruled out privatising the international airports in Karachi, Lahore and Islamabad, saying it plans to outsource their operations to improve efficiency and passenger services.

The Federal Secretary of the Privatisation Commission told the Senate Standing Committee on Privatisation that ownership of the airports would remain with the government, while operational management would be handed over under the outsourcing plan.

The committee, chaired by Senator Dr Afnan Ullah Khan, reviewed progress on airport outsourcing, the privatisation of power distribution companies and other transactions.

Officials said earlier attempts led by the Ministry of Aviation had not succeeded. The current process is being structured with support from international financial institutions.

The Asian Development Bank has been appointed financial adviser for the outsourcing of Islamabad International Airport, with the formal agreement expected to be signed shortly.

The transaction is targeted for completion within nine months, while due diligence is expected to be completed within three months.

The committee was also informed that a single financial adviser would be appointed for the outsourcing of Karachi and Lahore international airports. Preparatory work for both transactions has already begun.