ISLAMABAD: Federal Minister for Aviation Khawaja Saad Rafique on Friday informed National Assembly that Islamabad International Airport would be outsourced for 15 years within three to four months, and it would have no impact on its employees.
Speaking in the house, he said that the navigational services and runway operations will not be outsourced, adding the Civil Aviation Authority (CAA) will continue to do it.
He added that the International Finance Corporation (IFC), a World Bank offshoot, is the government’s consultant on the matter.
Tender process for outsourcing Islamabad Airport: Ministry allowed to proceed further
He said that neighbouring India has outsourced eight of its airports and the same model is being applied in the country which would be of great help in addressing the issues faced by the travelers at the airport.
In March this year, the Finance Ministry said that efforts to outsource airports had begun. Late in June, the government said it was looking to outsource only the Islamabad Airport at the moment. Last week, the CAA told a parliamentary panel that outsourcing of Islamabad airport is in progress.
Speaking on the floor of the house, the minister for aviation said that 12-13 companies have shown interest and that there will be competitive bidding.
He assured the house that the public procurement rules are being completely followed, adding, “we are proceeding under the private-public partnership authority rules.”
“This will be Pakistan’s first airport that we are outsourcing. In it, the best international practices will be implemented…once it’s done, Lahore and Karachi airports will be outsourced,” he added. “The whole world including India has done this. India has outsourced eight of its airports. We must decide if we want to remain in the Stone Age or follow what the world is doing,” he added.
He said that the world’s best airport operating practices are through private operators, adding besides India, Istanbul airport in Turkiye and Prince Mohammad Bin Abdulaziz International Airport (Medina Airport) are also run on an outsourced basis. “There are countless such examples and what we are planning to do is nothing new,” he maintained.
He clarified that there is a need to understand that outsourcing does not mean that the airport is being sold out or mortgaged or that any of the airport employees will be left jobless. “I would like to make it clear that outsourcing the airport would not have any impact on its employees as it’s the major concern of the employees. All those working there will have complete job security and they will get their salaries as per the law,” he added.
The minister also spoke about the privatisation of the national flag carrier – Pakistan International Airlines (PIA) – and said that the airline will stop working completely if it is not privatised within the next one-and-a-half-year.
“All my colleagues here know me that I’m strongly against privatization. But even a person like me has realised that if PIA — whose deficit is Rs80 billion this year — remains as is, its deficit will balloon to Rs259bn by 2030,” he added.
“Can Pakistan afford this? No, it can’t. So what should be done? What South African Airlines and Air India did? Tata has ordered 450 new planes for Air India. The state cannot run it. The state can [only] ensure that no employee of PIA should be rendered jobless,” he added. He said a holding company would be created for PIA — whose liabilities he said were Rs742bn, adding it needs billions in investment.
“You have 27-28 planes that are operational. You cannot compete with the powerful airlines of the Gulf…if PIA is not restructured, it could shut down in the next 1-1.5 years,” he warned.
“We are putting it on this path and the next government will see this endeavour through, he said, adding all the employees’ rights should be protected and no one should be allowed to play politics on this. The PIA can be made a profitable entity if the private sector comes forward and let me reiterate the privatization should be on pure merit,” he added.
Rafique also said that following legislation last night, the last remaining roadblock for flights to resume to the UK had been removed.
Criticising his predecessor Ghulam Sarwar Khan’s, what he said foolish statements, which cost the country Rs70 billion, the minister said that in the next three months, flights to the UK will resume.
“It’s very good news for expatriate Pakistanis. In the next three months, at least flights to the UK will resume. After that flights to the EU and the US will resume,” he added.
Copyright Business Recorder, 2023
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