New Islamabad airport to be leased out to international investors

• Islamabad airport declared "cleaner" transaction than others.
• Govt yet to advertise the outsourcing of any airport.
• Govt making all-out efforts to outsource before August 2023.

ISLAMABAD: The government has decided to lease out New Islamabad International Airport to interested international investors in the first phase following the practical difficulties in outsourcing two international airports of Karachi and Lahore, The News reported Tuesday.

So far, the New Islamabad International Airport has been declared a "clean" transaction compared to other airports. Therefore, the government is considering moving ahead with its outsourcing as early as possible. 

Moreover, the International Finance Corporation (IFC), in its presentation to Minister for Finance Ishaq Dar in the federal capital, has mentioned that there are parties interested in securing the operations of these three airports.    

However, it will not be easy for the government to proceed speedily as it has not yet advertised the outsourcing of any airport. 

“There are some practical issues that need resolution before handing over airport to any international party. For instance, the national flag carrier Pakistan International Airlines (PIA) has become a defaulter of various facilities of these airports,” top official sources confirmed while talking to The News. 

"Even if the government were to take over the past liabilities of PIA, how would the new airport operator allow free-of-cost facilities to the carrier? This was one of the major concerns that needed to be resolved before moving forward."

“In Karachi and Lahore, certain parts of the airports are occupied by some relevant agencies so that requires a permanent solution because the potential investors would like to utilise the complete airport for commercial purposes,” said the officials. 

The Airport Security Force (ASF) has also become one of the stumbling blocs in accomplishing this transaction. 

It remains to be seen how the government resolves these problems. The sources said that the government is making all-out efforts to outsource New Islamabad International Airport before the completion of its tenure in the second week of August 2023 but doing so seems difficult.

Dar also chaired the high-level meeting and directed the transaction adviser to devise a viable plan to outsource the Islamabad airport to any interested party with the experience to run the airports.

“The government has envisaged a deadline for the completion of this transaction next month and the World Bank’s IFC has been mandated as transaction adviser to come up with a feasible plan,” the sources further confirmed. 

The transaction adviser and Civil Aviation Authority (CAA) have been directed to speed up the complete spadework so that New Islamabad International Airport can be outsourced within the stipulated timeframe.

According to an official statement issued by the Ministry of Finance, Dar chaired a steering committee meeting to oversee the outsourcing of the airports’ operations at the finance division. 

During the meeting, IFC and the transaction adviser gave a presentation to the committee, which decided on the future roadmap for outsourcing the first airport to improve service delivery and match best international practices. 

Aviation and Railways Minister Khawaja Saad Rafique, Commerce Minister Syed Naveed Qamar, SAPM on Finance Tariq Bajwa, SAPM on Government Effectiveness Dr Muhammad Jehanzeb Khan, Aviation secretary, CAA DG, IFC representatives and senior officers from finance and aviation attended the meeting.