Privatisation Commission approves ADB's advisory role in outsourcing Islamabad Airport operations

Pakistan's Privatisation Commission Board has approved engaging the Asian Development Bank (ADB) as a transaction advisor for outsourcing the operations of Islamabad International Airport. This move is part of the government's broader privatization agenda to enhance efficiency and attract investment.

The board reviewed and approved the terms of a transaction advisory services agreement (TASA) with the ADB. The airport will be transferred to a private sector operator under a long-term concession through a competitive bidding process. The government anticipates this privatization will boost operational efficiency, improve the passenger experience, and align airport services with international standards. The target is to complete this privatization within the current fiscal year.

Muhammad Ali, Adviser to the Prime Minister on Privatisation and Chairman of the Privatisation Commission, expressed confidence in the ADB's expertise to manage this transaction with maximum competition and transparency. The government is also preparing to initiate the process for outsourcing operations at Karachi and Lahore international airports. Previous government-to-government discussions for these airports did not yield expected progress, and they are projected to attract over $500 million each in new investment.

In addition to airport privatization, the commission approved the appointment of BDO Ebrahim and Company as external auditors for the next three fiscal years. The government reiterated its commitment to transparency and efficiency in its privatization program to bolster investor confidence. Prime Minister Nawaz Sharif has emphasized reducing government involvement in commercial activities and promoting the private sector, making privatization a key priority for the current fiscal year.

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The prime minister strongly believes in reducing government interference in the commercial space and promoting the private sector; that is why we have made privatisation a key priority.