Pakistan to outsource Islamabad airport for 15 years to improve operations — minister 

People gather to receive arriving passengers at the international arrival area of the Islamabad International Airport in Islamabad, Pakistan on February 3, 2020. (AFP/File)
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Updated 22 July 2023
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Pakistan to outsource Islamabad airport for 15 years to improve operations — minister 

  • Saad Rafique says the move to outsource the airport does not equate to privatization 
  • Says airport’s runway, navigation operations not to be included in outsourcing process 

ISLAMABAD: Pakistan’s aviation minister has announced the government would outsource the management of the Islamabad International Airport to a third party for a period of 15 years to improve its operational activities, Pakistani state media reported on Friday. 

The airport, which became fully operational in May 2018 after replacing the defunct Benazir Bhutto International Airport, serves as the largest airfield in the country in terms of cargo and passenger capacity, and caters to 9 million passengers each year, according to its official website. 

The Islamabad airport is also the second busiest one in the country after the Jinnah International Airport in Pakistan’s commercial hub of Karachi. 

“The move does not equate to privatization. Instead, it aims to bring in proficient operators to enhance airport operations,” the state-run APP news agency quoted Rafique as saying during a parliamentary session. 

“Open competitive bidding would be ensured, allowing the best bidder to be given the opportunity to operate the airport.” 

The process would be profit-oriented and ultimately benefit the national exchequer, according to the minister. 

“The International Finance Corporation will serve as the consultant, and already 12-13 companies have shown interest in participating in the bidding process,” he said. 

Rafique highlighted the success of outsourced airports in other countries like India and Turkiye, mentioning that even the Madinah airport had been efficiently outsourced to deliver enhanced services. 

He, however, clarified that the runway and navigation operations of the Islamabad airport would not be included in the outsourcing process. 

The minister assured that the process would be transparent and in accordance with rules and regulations. 

“No employees would be laid off, and all existing staff would retain their job security and privileges,” he said. “However, best practices would be implemented to ensure facilities at airports are efficiently managed.” 

He also stressed the need to restructure the Pakistan International Airlines (PIA) to address its substantial deficit, which had reached Rs80 billion this year and was projected to increase to Rs259 billion by 2030, if not dealt with appropriately. 


Pakistan PM orders port reforms to cut cargo delays, boost trade and growth

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Pakistan PM orders port reforms to cut cargo delays, boost trade and growth

  • Shehbaz Sharif orders transparent auctions of abandoned cargo and separate yards to clear port backlogs
  • Government to fast-track dredging, port expansion and rail links to handle larger vessels and inland cargo

ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday ordered wide-ranging reforms at Pakistan’s ports to reduce cargo delays, cut costs for businesses and support economic growth, directing authorities to improve coordination, infrastructure and transparency across the sector.

The instructions were issued during a meeting of a private-sector working group formed to recommend port-related reforms, as the government seeks to ease bottlenecks in trade logistics and improve competitiveness.

“Our ports play an extremely important role in expanding business and driving economic growth in the country,” Sharif said, according to a statement from his office, as he directed port-linked agencies to strengthen coordination to reduce cargo dwell time and ordered a further reduction in port charges to ease the burden on the business community.

Sharif also instructed officials to introduce a transparent system for auctioning abandoned cargo, including the creation of separate yards at ports and the use of internationally reputed firms to manage the process.

He called for faster work on dredging and expanding ports to allow larger vessels to berth and ordered improvements in rail connectivity from ports to facilitate inland cargo movement.

A briefing given to the participants of the meeting highlighted work on a National Ports Master Plan was progressing, adding that a port community system had recently become operational, and fees at several ports were being reduced, including a cut of more than 50 percent in bulk cargo charges at Port Qasim.

Officials also said an electronic bidding system for auctioning abandoned cargo would be launched soon and that tenders for expansion and dredging at Karachi’s ports had already been issued.