ISLAMABAD: Pakistan has taken new steps to advance the outsourcing of two major international airports. The Privatisation Commission Board approved key measures for the process on Wednesday.
The decision covers Allama Iqbal International Airport in Lahore and Jinnah International Airport in Karachi. Both airports are part of the government’s wider privatisation programme.
The decisions were made during the 257th meeting of the Privatisation Commission Board. Muhammad Ali chaired the meeting in his role as Adviser to the Prime Minister on Privatisation.
The Board approved an EY-Parthenon-led consortium as the top-ranked party. The consortium was selected to serve as Financial Adviser for the outsourcing process.
The selection followed a competitive process conducted by the Privatisation Commission. The Board also formed a Negotiation Committee for the next stage.
The committee will work to finalise the Financial Advisory Services Agreement with the selected consortium. This agreement will support the next steps for the airport outsourcing process.
The government aims to improve the management and efficiency of major public-sector assets. The outsourcing of these airports is part of those broader efforts.
The Board also approved important measures for two power distribution companies. LESCO and MEPCO were declared major transactions under the privatisation programme.
The decision means Financial Advisers will be appointed for both companies. The Privatisation Commission will now begin the appointment process.
LESCO and MEPCO belong to the fourth batch of distribution companies selected for privatisation. Work on the first three batches is already in progress.
The government has been pursuing privatisation to reduce financial pressure on the public sector. It also aims to improve the performance of state-owned organisations.
Pakistan’s privatisation programme includes several major state-owned entities. The government has stressed transparency and competitive procedures throughout the process.
The Privatisation Commission said it would continue working under applicable rules and regulations. It also highlighted accountability and professional management as key priorities.
The government also expects privatisation transactions to maximise value for Pakistan. This includes protecting the interests of the government and the public.
Pakistan International Airlines has already moved through the privatisation process. An Arif Habib-led consortium acquired a 75 percent stake in PIA last December.
The consortium paid Rs135 billion for the majority stake. Most of the proceeds are expected to be invested back into the airline.
Fauji Fertiliser Company was initially among the competing bidders. It later became part of the transaction and acquired an additional 25 percent stake.
The latest decisions show that Pakistan is continuing its wider privatisation drive. The outsourcing of major airports remains an important part of this programme.
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The government is now expected to proceed with negotiations for the airport advisory agreement. Further steps will follow after the agreement is finalised.
