Privatization Commission appoints ADB for outsourcing of Islamabad Airport
The Privatisation Commission Board (PCB) has approved
the signing of a Transaction Advisory Services Agreement (TASA) with the Asian Development Bank (ADB) to facilitate the
outsourcing of operations at Islamabad International Airport (IIAP).
The decision was taken at a board meeting chaired by
Adviser to the Prime Minister on Privatisation and Chairman of the
Privatisation Commission Muhammad Ali. The board reviewed and endorsed the
negotiated terms of the advisory agreement, expressing confidence in ADB's
ability to complete the transaction in a transparent, competitive and timely
manner.
Under the proposed framework, Islamabad International
Airport will be outsourced to a qualified private-sector operator through a
long-term concession agreement awarded via a competitive bidding process. The
initiative is aimed at improving operational efficiency, enhancing passenger
services and bringing airport operations in line with international best
practices.
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Airport gets same ranking like Dubai Airport
The government plans to complete the outsourcing of
Islamabad International Airport during the current fiscal year. The advisory
agreement with ADB was revised to incorporate changes to certain contractual
provisions, including indemnity clauses reflecting the bank's multilateral
status. The amended terms have already received approval from the Cabinet
Committee on Privatisation.
Karachi and Lahore
airports next
The government is also set to begin the process of
appointing financial advisers for the outsourcing of Karachi and Lahore
international airports after earlier government-to-government discussions
failed to produce the desired outcome.
According to Privatisation Commission Chairman Muhammad
Ali, both airports are expected to attract more than $500 million each in fresh
private investment under the proposed concession model.
Separately, the Privatisation Commission Board approved
the appointment of BDO Ebrahim & Company, Chartered Accountants, as
external auditors for the financial years 2025-26 to 2027-28, following the
recommendation of the board's Audit Committee.
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sought to build leisure attractions at Islamabad, Karachi and Lahore Airports
In an official statement, the board reaffirmed its commitment to maintaining
transparency, efficiency and high governance standards throughout the
privatisation process to strengthen investor confidence in the government's
reform programme.
Source:
Dawn