Pakistan moves ahead on plan to outsource three airports
- International Finance Corporation (IFC), part of the World Bank Group, qualified as transaction advisor
The Economic Coordination Council (ECC) of the Cabinet was informed on Thursday that the process of outsourcing of three airports has been initiated within the scope of Public-Private Partnership Act-2017.
In a statement, the Finance Division said the government would engage private investor/airport operator through a competitive and transparent process to run the airports, develop appertaining land assets and enhance avenues for commercial activities and to garner full revenue potential.
The ECC was considering a summary of Ministry of Aviation on engagement of International Finance Corporation (IFC), a part of the World Bank Group, as transaction advisor for the outsourcing of three airports.
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“In this regard, IFC has been qualified as a transaction advisor. The ECC after detailed discussion approved the draft Transaction Advisory Agreement (TASA), reached with the IFC by PCCA for outsourcing of three airports.”
The Aviation Division, in its summary sent to ECC, noted that in view of international better practices, the federal government has been considering various options to outsource the operation of major airports in Pakistan with the aim of effecting an improvement in passenger service and optimizing the realization of their revenue potential for the last few years.
In this regard, the federal cabinet conveyed various decisions, and in compliance with these, inter alia, Expression of Interest (EoI) was also invited to hire an audit firm for preparing proposals for corporatisation of airports.
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The Federal Cabinet also constituted committee of ministers to oversee the entire process. However, the process could not attain finality.
Other key decisions
The ECC also considered and approved the Declaration of Commerciality and Field Development Plan over Hilal and Iqbal discoveries in favour of Mari Petroleum Company Limited (MPCL).
It granted two years’ renewal over Kirthar exploration license block in favour of Polish Oil & Gas Company Limited (POGC) with effect from August 28, 2022.
Moreover, the Cabinet body also granted permission of Extended Well Testing (EWT) over Ghazi-1 discovery to MPCL.
Additionally, the ECC also decided to provide supplementary grant of Rs607.6 million in favour of Ministry of Energy (Power Division) for execution of development schemes in Sindh.
It okayed Rs1,689.5 million in favour of Ministry of Housing and Works for execution of development schemes under SDGs Achievement Programme (SAP) in Khyber-Pakhtunkhwa and Sindh.
The ECC greenlighted Rs5 billion in favour of Ministry of Housing and Works for execution of development schemes in erstwhile FATA.
It deferred a summary submitted by Ministry of Energy (Power Division) on implementation agreement signed between government of Pakistan and K-Electric (Erstwhile KESC) on pending issue of payment of duties and taxes.
Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar presided over the meeting of the ECC of the Cabinet today.
The meeting was attended by Federal Minister for Power Khurram Dastgir Khan, Federal Minister for Industries and Production Syed Murtaza Mahmud, Federal Minister for Commerce Syed Naveed Qamar and Federal Minister for Aviation Khawaja Saad Rafique.