ISLAMABAD – The federal government has finalized the plan to outsource the Islamabad International Airport, shortly after Shehbaz Sharif’s tenure as the Prime Minister ended.
As per the plan, the airport would be outsourced for 15 years and the third party will pay $100 million in advance. In case of default, the advance payment will be seized, and the contract will be canceled as well.
The Ministry of Finance has given approval to outsource the facility as Anwarul Haq Kakar assumed charge as caretaker prime minister of Pakistan.
Although complete details about the outsourcing are yet to be released, it is being reported that administrative and financial affairs, design, and construction of Islamabad International Airport will be handled by a third party.
Moreover, the matters pertaining to service charges, exchange rates, and shop rent will also be handled by the third party; however, matters related to security, customs, and immigration services at the airport will remain under the control of the Civil Aviation Authority (CAA).
As per the initial reports, the third party will also be permitted to establish shopping malls and branded shops at the airport.
It bears mentioning that the former Aviation Minister, Khawaja Saad Rafique had announced that the airport would be outsourced for 15 years but added that the navigational services and runway operations will not be outsourced and Civil Aviation Authority will continue to do it.
Rafique explained that International Finance Corporation (IFC), a World Bank offshoot, is the government’s consultant on outsourcing and around a dozen companies have shown interest.
The then lawmaker, while speaking in the National Assembly, assured that there will be competitive bidding and that public procurement rules are being completely followed; he also confirmed that no one will be rendered jobless.
The minister told the legislators that Islamabad airport will be Pakistan’s first airport that will be outsourced and best international practices will be implemented.
The lawmaker opined that the world’s best airport operating practices are through private operators. Citing the example of India, Rafique said there are around eight airports whose operations have been outsourced.
‘Likewise, Istanbul’s airport is outsourced, and the same is true for Madinah’s airport. There are countless examples,” he said.
The minister also clarified that outsourcing does not mean that the airport is being sold or mortgaged.
