KARACHI: Pakistan has initiated the process to outsource operations of its three major airports as a public-private partnership, the finance ministry announced on Thursday, as the South Asian country seeks to attract external finances to avoid an acute balance of payments crisis.
Pakistan's railways minister, Khawaja Saad Rafique, revealed in January that Islamabad was in talks with Doha and would also approach the UAE to outsource operations of its Karachi, Lahore and Islamabad airports.
He said the move would improve airport service standards and would also bring in much-needed foreign direct investment into the country. Rafique said Islamabad had acquired the services of the International Finance Corporation, a subsidiary of the World Bank, that has provided consultancy for dozens of airports.
In a meeting of the Economic Coordination Committee (ECC), Pakistan's top economic body, a summary to engage the IFC as a transaction advisor for the outsourcing process was presented.
"The ECC after detailed discussion approved the draft Transaction Advisory Agreement (TASA), reached with the IFC by PCCA for outsourcing of three airports," the finance ministry said.
Participants of the meeting were told that the outsourcing of three airports has been initiated within the scope of a public-private partnership to engage private investors/airport operators through a competitive and transparent process.
The investors and airport operators would be required to "run the airports, develop appertaining land assets and enhance avenues for commercial activities and to garner full revenue potential," the statement added.
The announcement comes with Pakistan facing a deep economic crisis, as it remains locked in so far unsuccessful talks with the International Monetary Fund (IMF) to unlock $1.1 billion in funds from a stalled $6.5 billion loan program.
The South Asian country has been desperately seeking external financing to avoid defaulting on its obligations, with its dwindling foreign exchange reserves barely enough to cover a few weeks of imports and its national currency facing massive devaluation amid soaring inflation.
