Pakistan Finance Minister Announces Outsourcing of Islamabad Airport by August 12

Pakistan, 17th July 2023: Pakistan Finance Minister Ishaq Dar has advised stakeholders at Islamabad International Airport (IIA) that the airport’s operations must be outsourced by August 12. The current Shehbaz Sharif government’s term ends on August 12.

Dar presided over a steering group meeting on Saturday to examine the development of airport operations outsourcing.

Ishaq Dar also gave ministries involved a deadline to submit reforms to civil aviation regulations and a plan for the restructuring of the country’s national carrier Pakistan International Airlines (PIA) during this meeting.

According to insiders, the Pakistani cabinet minister also stressed the importance of gaining Parliament’s assent on these revisions before the end of July.

If modifications to Pakistani civil aviation regulations are enacted by the end of July, global aviation authorities can dispatch in August for an on-the-ground assessment of operational systems and standards needed to restart PIA’s flights to the United States, the United Kingdom, and Europe.

Failure to fulfil the July deadline might result in a year-long delay before inspections can begin.

The separation of the Pakistan Civil Aviation Authority, PIA, and the Airports Security Force was one of the revisions to civil aviation laws. By enacting ordinances, this aims to eliminate the overlapping obligations of these bodies.

Pakistan Prime Minister Shehbaz Sharif convened a meeting to reform and revitalise the PIA as well. According to PTI, Pakistan International Airlines lost Rs 38 billion in the first three months of this year, which is 171% more than the same period in 2022.

During the first three months of the current fiscal year, Pakistan’s national carrier earned only Rs 61 billion and lost Rs 21 billion. The losses of PIA can be ascribed to the strengthening of the US dollar against the Pakistani rupee, rising oil prices, and high loan rates.

Pakistan’s Economic Coordination Committee (ECC) resolved in March of this year to outsource the country’s three major airports—Karachi, Lahore, and Islamabad, as well as land assets at these airports. To earn foreign exchange, these operations would be conducted under a public-private partnership (PPP) basis.

Meanwhile, Pakistan’s economy has been in free slide for some years, resulting in unbridled inflation and destitution. The cash-strapped country received $1.2 billion from the International Monetary Fund (IMF) on Thursday after the IMF’s executive board approved a $3 billion loan to Pakistan over a nine-month period.