Aviation Minister Khawaja Saad Rafique recently announced that the Islamabad Airport will undergo outsourcing for a period of 15 years. During the announcement in the National Assembly, the minister clarified that the navigational services and runway operations would not be part of the outsourcing deal, as these critical functions would continue to be handled by the Civil Aviation Authority (CAA). The decision to outsource the airport is part of the government’s efforts to bring about efficiency and international best practices in airport operations.
To ensure a smooth transition, the International Finance Corporation (IFC), an offshoot of the World Bank, has been appointed as the government’s consultant on this matter. The finance ministry initiated the outsourcing process in March, and after careful evaluation, it was decided to start with Islamabad Airport before considering outsourcing for Lahore and Karachi airports in the future.
The aviation minister emphasized that the outsourcing initiative follows a private-public partnership approach and assured lawmakers that all public procurement rules would be strictly adhered to. He mentioned that there has been substantial interest from 12 to 13 companies, and the process will involve competitive bidding to ensure transparency and efficiency.
The decision to outsource Islamabad Airport comes after studying successful international examples. Many countries around the world, including neighboring India and airports like Istanbul and Madinah, have already outsourced airport operations and witnessed positive results. The move is intended to implement the best international practices, bringing Islamabad Airport up to global standards.
The minister also addressed concerns regarding job security for airport employees. He categorically stated that outsourcing does not mean the airport is being sold or mortgaged, nor does it imply job losses. On the contrary, all employees will retain their jobs and receive their salaries according to the law.
In addition to the outsourcing of Islamabad Airport, the aviation minister made a case for privatizing Pakistan International Airlines (PIA), the national flag carrier. While he acknowledged his previous reservations about privatization, he highlighted the pressing financial challenges faced by PIA. With a significant deficit of Rs80 billion in the current year, it is projected to balloon to Rs259 billion by 2030 if left unchanged.
Drawing on examples from South African Airlines and Air India, he stressed the need to create a holding company for PIA, which currently has liabilities of Rs742 billion. Restructuring and investment are necessary to keep the airline afloat. The minister emphasized that employee rights should be protected throughout the process and that the private sector’s involvement could lead to profitability, ensuring a sustainable future for PIA.
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In a separate announcement, the aviation minister shared the good news that flights to the UK will resume in the next three months following recent “historic” legislation. He criticized previous statements by his predecessor, Ghulam Sarwar Khan, which he claimed had cost the country Rs70 billion. The resumption of flights to the UK is expected to bring relief to overseas Pakistanis, with plans for flights to the EU and America to follow soon after.
In conclusion, the decision to outsource Islamabad Airport for 15 years represents a significant step towards enhancing efficiency and adopting international best practices in airport operations. It is hoped that this move will lead to positive outcomes and improvements in the aviation sector. Additionally, the government’s consideration of privatizing PIA aims to address the financial challenges faced by the national carrier and secure a viable future for the airline.
