Pakistan is taking measures to outsource the management of its three key airports in a bid to enhance efficiency. The decision was also made to entice direct foreign investment and ensure travelers are provided with better airport facilities.

Big changes in the country’s aviation sector

On December 30, 2022, Prime Minister of Pakistan, Shehbaz Sharif, gave the green light to the country’s Aviation Ministry to begin the process of outsourcing operations of Jinnah International Karachi Airport (KHI), Islamabad International Airport (ISB), and Allama Iqbal International Airport (IHL).

According to the Prime Minister's Office of Pakistan, Sharif mandated all appropriate organizations to prioritize the outsourcing of airports and ensure accountability throughout the process.

During the meeting, the prime minister also emphasized that the outsourcing of airports is a common profit-driven practice around the world. It was told that initially, airports will be outsourced under a public-private partnership (PPP).

Public-private partnerships are being implemented in 44 countries, including the United States, Britain, India, Bahrain, and Brazil, where airports are being managed on the basis of public-private partnerships, according to an official Facebook post from the Prime Minister's Office of Pakistan.

On its official Twitter account, the Aviation Ministry of Pakistan stated that this is considered to be “a major decision to pave the way for foreign direct investment”, which will help to provide international standards and services at airports.

It added,

“International operators will help run these airports for a period of 20 to 25 years.”

According to the local news media outlet, the possibility of outsourcing major airports was already discussed in 2017. But it was not until the country's prime minister gave their authorization that the proposal was formally adopted.

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Reviving the faltering image

At the meeting, the performance of Pakistan International Airlines (PIA) and plans for restoring the flagging reputation of the airline was also discussed.

It was also made clear that a plan had been devised to make PIA a profitable airline, and efforts were being pursued to lift the ban enforced by the European Union Aviation Safety Agency (EASA) on PIA.

The Civil Aviation Authority (CAA) of Pakistan met with the European Commission in Brussels, Belgium on October 25, 2022, to discuss the potential removal of a flight ban on PIA.

In July 2020, the European Union added PIA to its Air Safety List following a scandal in 2020 related to pilot license forgery, resulting in the suspension of the airline's operations in the EU over safety worries. It is noteworthy that the US and UK followed Europe's lead and prohibited the airline from flying in their respective airspace.

Founded in 1946, PIA is the country’s flag carrier and one of the oldest airlines in Asia. According to Planespotters.net, PIA has a total of 31 aircraft in its fleet with an average age of 14.9 years old. The airline’s fleet comprises 15 Airbus A320s, 12 Boeing 777s, three ATT 42s, and one ATR 72 aircraft.