Pakistan Minister for Aviation, Khawaja Saad Rafique said in the National Assembly on Friday that the Islamabad airport would be outsourced for 15 years to improve its operational activities.
This comes at a time when Pakistan is dealing with a massive economic crisis, with skyrocketing inflation and diminishing foreign exchange reserves.
However, the Minister stated that the initiative does not imply privatization, but rather aims to bring in proficient operators to enhance airport operations.
He also stated that open competitive bidding would be ensured, allowing the best bidder to run the airport and that the process would be profit-oriented, ultimately benefiting the national exchequer.
The International Finance Corporation will serve as the consultant, and he noted that 12 to 13 companies have already expressed interest in participating in the bidding process.
He also promised that the process would be transparent and that all rules and regulations would be followed.
However, the aviation minister stated that the runway and navigation operations will not be outsourced.
This measure comes just weeks after the IMF authorized a USD 3 billion bailout to help Pakistan avoid a debt default.
In addition to the IMF’s aid, Pakistan received financial assistance from the UAE and Saudi Arabia totaling USD 1 billion and USD 2 billion, respectively, to strengthen its depleted reserves.
With sky-high inflation and foreign exchange reserves only enough to cover one month’s worth of restricted imports, Pakistan has been experiencing its worst economic crisis in decades, which analysts say may have led to a debt default if the IMF deal had not been reached.
The agreement comes after an eight-month delay and provides some relief to Pakistan, which is dealing with a severe balance of payments crisis and declining foreign exchange reserves.
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