Cash-strapped Pakistan to outsource Islamabad Airport by August 12, says Finance Minister Ishaq Dar 

Pakistan Finance Minister Ishaq Dar has told stakeholders of the Islamabad International Airport (IIA) to outsource the airport’s operations by August 12. August 12 is the final day of the incumbent Shehbaz Sharif government’s term. Dar on Saturday chaired a meeting of the steering committee for assessing the progress of the outsourcing of airport operations.  

During this meeting, Ishaq Dar also gave a deadline to departments concerned to finalise amendments to civil aviation laws and a plan for the restructuring of the country’s national carrier Pakistan International Airlines (PIA). The Pakistani cabinet minister also emphasised getting Parliament’s approval on these amendments by July-end, Pakistani newspaper Dawn reported citing sources.  

If amendments to Pakistani civil aviation laws are approved by July-end, global aviation regulators can dispatch in August for an on-ground assessment of operational systems and standards required to restore PIA’s flights to the US, the UK, and Europe. A failure to meet the July deadline could cause a year-long delay before the inspections can take place.  

Some of the amendments to civil aviation laws included segregation of the Pakistan Civil Aviation Authority, PIA, and Airports Security Force. This is aimed at doing away with the overlapping responsibilities of these organisations by enacting ordinances. 

Pakistan Prime Minister Shehbaz Sharif also constituted a meeting to restructure and revive the PIA. Pakistan International Airlines suffered a loss of Rs 38 billion in the first three months of this year, 171 per cent more than same period in 2022, as per PTI.  

Pakistan’s national carrier only earned Rs 61 billion and suffered a loss of Rs 21 billion during the first three months of the ongoing year. PIA’s losses can be attributed to the appreciation of US dollar against Pakistani rupee, rising oil prices, and high interest rates.  

In March this year, Pakistan’s Economic Coordination Committee (ECC) decided to outsource the cash-strapped country’s three major airports—Karachi, Lahore, and Islamabad—and land assets at these airports. These operations would be run through public-private partnership (PPP) model to generate foreign exchange.  

Meanwhile, Pakistan's economy has been in a free fall since the last few years, leading to unchecked inflation and poverty. The cash-strapped country on Thursday received $1.2 billion from the International Monetary Fund (IMF) after approval by the IMF's executive board to provide $3 billion to Pakistan over a period of nine months. 

Also Read: World Cup 2023: Delhi-Ahmedabad airfare jumps upto Rs 24,000 ahead of India vs Pakistan clash in October

Also Read: Reliance Brands in talks to buy Alia Bhatt’s childwear brand Ed-a-Mamma for Rs 300-350 crore: Report

Also Read: North India rain update: Uttarakhand on alert as Ganga crosses danger mark; Delhi to receive light showers today