World
Pakistan Government To Outsource Operations Of Islamabad International Airport Amid Economic Crisis
Islamabad International Airport (Image via Wikimedia Commons)
Pakistan, facing a severe cash shortage, has reportedly decided to outsource the operations of Islamabad International Airport.
Finance Minister Ishaq Dar, under the Shahbaz Sharif-led government, has instructed stakeholders to finalise the necessary procedures for outsourcing by 12 August.
The decision is being made ahead of the end of the current government's term and the dissolution of the National Assembly on 13 August.
During a meeting chaired by the finance minister, instructions were given to the relevant departments to complete amendments to civil aviation laws and develop a restructuring plan for Pakistan International Airlines (PIA) by the end of the month.
The amendments aim to separate the functions of the Pakistan Civil Aviation Authority, PIA, and Airports Security Force to avoid overlapping responsibilities.
The World Bank's International Finance Corporation (IFC), acting as the transaction adviser for the outsourcing, briefed the meeting on the roadmap for the process.
The Economic Coordination Committee had previously decided to initiate a 25-year outsourcing plan for operations and land assets at Islamabad, Lahore, and Karachi airports in a public-private partnership to boost foreign exchange.
Pakistan, grappling with a balance of payments crisis and dwindling foreign exchange reserves, recently secured a $3 billion bailout from the International Monetary Fund (IMF).
The Stand-By Arrangement (SBA) will provide the total amount over a nine-month period and aims to help stabilize the economy while creating room for social and development spending through improved domestic revenue mobilisation and careful spending execution, as stated by the IMF.
Despite the sizable IMF bailout, Pakistan will still need to seek multilateral and bilateral financial support as it requires $22 billion to meet its external payment obligations, including international debt servicing, in the fiscal year 2024, according to a Reuters report.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest
