Outsourcing of Islamabad International Airport Approved by Ministry of Finance
In a recent development, the Ministry of Finance has granted approval for the outsourcing of Islamabad International Airport, a decision that will be effective for the next 15 years.
Transition Following National Assembly Dissolution
This decision follows closely on the heels of Anwaarul Haq taking up the role of caretaker prime minister of Pakistan after the National Assembly was dissolved.
Key Points of the outsourcing Plan
Under this outsourcing plan, a third-party entity will step in to manage the airport operations. As part of the agreement, the third-party entity will make an upfront payment of $100 million. It’s important to note that this payment will be subject to forfeiture in case of any defaults on the contract terms, leading to contract cancellation.
Roles and Responsibilities
The scope of responsibilities undertaken by the third-party entity encompasses a range of aspects. Notably, the administrative and financial affairs, as well as the design and construction matters pertaining to Islamabad International Airport, will fall within the purview of the third party. This includes handling crucial matters like service charges, exchange rates, and shop rentals within the airport premises.
Distinct Authority for Security and Immigration
While the third party takes on significant operational aspects, it’s important to emphasize that matters related to security and immigration services at the airport will continue to be under the direct authority of the Civil Aviation Authority (CAA). This ensures that critical aspects of safety and immigration control remain unaffected by the outsourcing arrangement.
Additional Business Ventures
In a move aimed at enhancing the airport’s commercial offerings, the third-party entity will also be granted permission to establish shopping malls and brand shops within the airport premises. This is expected to further enrich the overall traveler experience and provide additional avenues for business development.
In Conclusion
The decision to outsource the operations of Islamabad International Airport marks a significant shift in its management structure. With the Ministry of Finance’s approval and the involvement of a third-party entity, the airport is set to undergo changes that could potentially lead to improved services and business opportunities. While key areas such as security and immigration will remain the domain of the CAA, the introduction of shopping malls and brand shops could contribute to a more vibrant and dynamic airport environment.
