Pakistan’s Islamabad airport would be outsourced for 15 years to improve its ‘operational activities’, Pakistan’s Aviation Minister Khawaja Saad Rafique said while addressing the national assembly. The declaration comes at a time when the country is facing a major economic crisis, with staggering inflation and depleting foreign exchange reserves, Geo News reported on July 21.
In addition, Pakistan’s aviation minister Rafique clarified that the move does not amount to privatization, but “aims to bring in competent operators to improve airport operations.” Sharing details related to the outsourcing of the airport, he noted that an open public tender would be guaranteed, allowing the highest bidder the opportunity to operate the airport. He also shared that the process will be profit-oriented, ultimately benefiting the national treasury.
Pakistan dreams of ‘new airport’ amid economic crisis
While providing the information related to the upcoming project, Pakistan’s Aviation Minister shared that the International Finance Corporation would act as a consultant, and already 12-13 companies have shown interest in participating in the bidding process.
According to Rafique, the bidding process would remain transparent and adhere to all rules and regulations. However, he clarified that runaway and navigation operations have been excluded from the outsourcing process.
Pakistan and its economic debt
The decision to outsource comes after the International Monetary Fund (IMF) approved a $3 billion bailout to help Pakistan avoid a debt default. In addition, Pakistan has also received financial assistance from the United Arab Emirates and Saudi Arabia totaling USD 1 billion and USD 2 billion respectively. This would strengthen its dwindling reserves on top of the IMF relief.
In addition to the United Arab Emirates and Saudi Arabia, China has come to “rescue” the cash-strapped country. According to the latest update, China has agreed to reschedule its debt of more than $2 billion over a two-year period, bringing significant relief to the cash-strapped government.
The move comes as Pakistan strives to rebuild its foreign exchange reserves through new borrowing. The Cabinet’s Economic Coordination Committee (ECC), chaired by Finance Minister Ishaq Dar, approved the revised terms of the deal between Islamabad and Beijing. This decision was informed by senior Pakistani officials.
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