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Pakistan Pursues Privatisation to Boost Revenue, Considers Outsourcing Major Airports
The government considers outsourcing three major airports to a consortium, while exploring the sale of a 60% stake in PIA under IMF reform plans.
ND
by News Desk
2025-01-02
Pakistan Pursues Privatisation to Boost Revenue, Considers Outsourcing Major Airports

Islamabad: Pakistan is intensifying efforts to generate revenue by accelerating its privatisation drive, which includes outsourcing the management of three major airports and selling a significant stake in the national carrier, Pakistan International Airlines (PIA).

A consortium comprising Terminal Yapi, ERG Insaat, and ERG UK has bid to pay 47% of its revenue as a concession fee to operate the airports. However, the bid fell short of the minimum requirement of 56%, according to the Pakistan Airports Authority (PAA).

The PAA, a public-sector autonomous body established in August 2024 under the Ministry of Aviation, is now referring the matter to the International Finance Corporation (IFC). The IFC, a World Bank Group member advising Islamabad on outsourcing, will evaluate the financial proposal and provide final recommendations.

“The details of the financial proposal will be presented and forwarded to the IFC for further evaluation and submission of final reports,” said Sadiq ur Rehman, chairman of the bid evaluation committee and deputy director general of the PAA.

In addition to outsourcing airports, Pakistan is looking to sell a 60% stake in its debt-ridden airline, PIA. The move is part of the government's broader plan to reform state-owned enterprises as outlined in its $7 billion IMF programme.

A prior attempt to privatise PIA in October failed, receiving only a single bid that fell below the minimum asking price. The government hopes its renewed efforts will attract competitive offers and support its fiscal goals.

Pakistan’s privatisation initiative is a critical step toward improving economic stability and addressing challenges in its aviation and public-sector enterprises. The decisions on airport outsourcing and the PIA stake sale will likely influence the success of the country’s reform agenda.
Tagged:

Aviation

PIA

EconomicReforms

IMFProgramme

PakistanPrivatisation
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