The government has taken a major step to improve the country’s aviation sector by deciding to outsource the operations of Islamabad International Airport to a foreign entity. This is part of a plan to outsource three major airports in Pakistan, following the best international practices.
The plan to outsource the airports was announced last year, but it faced delays and confusion due to the lack of a clear roadmap and financial details. The steering committee, which was formed to oversee the process, was also unclear about the scope and timeline of the outsourcing.
However, the government has now decided to proceed with outsourcing only Islamabad airport in the first phase, while the other two airports, Karachi and Lahore, will be decided later. The government hopes that outsourcing will improve the service delivery and efficiency of the airport, which is the main gateway to the capital city.
For this, the government has hired IFC, a member of the World Bank Group, as the transaction adviser for the outsourcing process. IFC gave a presentation to the steering committee recently and outlined the future roadmap for moving forward with the outsourcing of Islamabad airport.
Pakistan Civil Aviation Authority (PCAA) and IFC signed a service agreement earlier this year, under which IFC will provide advisory services to PCAA for selecting and engaging a private operator for Islamabad airport. IFC will also help PCAA in developing a regulatory framework and a performance monitoring system for the airport.
Outsourcing airports is a common practice in many countries around the world, as it allows private operators to bring in expertise, innovation, and investment to enhance the quality and capacity of the airports. Some of the successful examples of outsourced airports include London Heathrow, Dubai International, Singapore Changi, and Istanbul Airport.
