The Pakistan government started a process to outsource the management and operations of the airports in Karachi, Islamabad, and Lahore, local media Dawn reported last week, citing the country's Civil Aviation Authority (PCAA).

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The Islamabad International Airport (IIA) is likely to be outsourced by August 12 this year. Pakistan Finance Minister Ishaq Dar "told the stakeholders to finalise formalities to outsource the operations of Islamabad International Airport (IIA) by August 12, the final day of the incumbent government’s term," the national daily of Pakistan reported quoting sources.

Why is Pakistan pushing for outsourcing?

According to the report, the National Assembly Standing Committee on Aviation was informed that the decision to outsource was taken to boost foreign exchange reserves.

As on July 7, ye net foreign reserves with the State Bank of Pakistan (SBP) were recorded at $4.5 billion, up from $4.4 recorded in the week ending June 30.

Total liquid foreign #reserves held by the country stood at US$ 9.84 billion as of July 07, 2023.For details https://t.co/WpSgomnKT3#SBPReserves pic.twitter.com/COuaX23CC3

— SBP (@StateBank_Pak) July 14, 2023

It was further clarified that the "PCCA was not selling the airports, as only the operation and management controls were being outsourced".

Earlier, on March 31, another committee had decided to start the 25-year outsourcing of operations and land assets at Islamabad, Lahore, and Karachi airports. "Their operations will be run through a public-private partnership to generate foreign exchange," the report said.

In the meeting on Saturday, it was "agreed to fast-track IIA's outsourcing to improve service delivery in line with best industry practices", Dawn reported.

PCAA Director General Khaqan Murtaza had informed the committee that the authority to issue no-objection certificates was transferred from the PCAA to the building control authorities, "who had entirely failed to do so". The committee also proposed a change to the rule "regulation 68 of the CAA Act), requesting action against unauthorised constructions.

Meanwhile, a report in June claimed that the government had decided to restrict the outsourcing of airports only to Islamabad airport "for the time being and continued to extend about PKR 21.4 billion worth of 14 supplementary grants even a day after the passage of the federal budget".