The government of Pakistan has announced that it will outsource operations and land assets at three major airports in a bid to generate forex reserves. The airports in Karachi, Lahore, and Islamabad will be outsourced through a public-private partnership for a minimum of 25 years. The International Finance Corporation (IFC), the private sector branch of the World Bank Group, has been hired as the transaction advisor for the outsourcing. The move is expected to attract private investors and enhance commercial activities, ultimately increasing revenue potential. Only IFC agreed to offer advisory services and reached the agreement for transaction adviser for a fee of $4 million. Some parties from West Asia have shown interest in taking over the airports.
Meanwhile, several pilots have left Pakistan due to major pay cuts handed down to them in the form of pay cuts. Pakistan International Airlines (PIA) CEO Amir Hayat informed the Senate Standing Committee on Aviation that a significant number of pilots have left Pakistan. Hayat also pointed out that the Pakistan Supreme Court order directing hiring young male staff for the national flag carrier is yet to be implemented. The issue was raised when Civil Aviation Authority (CAA) listed in front of the Senate committee the reasons behind the decline of routes of foreign airlines. PIA also owes the CAA 150 billion Pakistani rupees.
