According to a report in Dawn, the cash-strapped Pakistani government, unable to manage operations at the Islamabad International Airport (IIA), has decided to outsource the task.
On Saturday, Finance Minister Ishaq Dar presided over a meeting of the steering committee and instructed the parties involved to finalize the formalities of delegating the operations by August 12, a day before the current government’s term expires.
The World Bank’s International Finance Corporation (IFC), the transaction adviser for the outsourcing, provided an update during the meeting. It was also resolved to expedite the airport’s outsourcing to enhance service delivery in accordance with best industry practices.
Despite receiving approval for the International Monetary Fund (IMF) bailout package, the Shehbaz Sharif government is facing a dismal economic future as forex reserves plummet.
Outsourcing airport operations is a method for reducing fat and maintaining a stable economy.
Notably, the Economic Coordination Committee decided on March 31 to outsource operations and land assets at three main airports in Pakistan, namely Islamabad, Lahore, and Karachi, for a period of 25 years.
“IFC gave a presentation to the committee, which made decisions regarding the future roadmap for outsourcing the first airport in order to improve service delivery and align with international best practices,” stated a vague and brief public statement following the meeting.
However, it was determined last month that the outsourcing of airport operations to a foreign entity would initially be limited to only IIA. Others will be delegated in due time, following an approval procedure.