Arif Habib-Led Consortium to Assume Control of PIA by Month-End.
As the PIA handover advances, the government is accelerating privatisation and outsourcing initiatives in the aviation and energy sectors.
Airport Operations Set for Private Sector Involvement
The Privatisation Commission Board has reviewed the proposed Transaction Advisory Services Agreement with the Asian Development Bank. The agreement covers outsourcing of operations at Islamabad International Airport.
Following deliberations, the Board appreciated progress and sought further clarity on certain provisions:
- The plan involves engaging a qualified private-sector operator under a long-term concession.
- This will follow a transparent and competitive process.
- The aim is to improve efficiency, passenger experience and align services with international standards.
- Substantial preparatory work has also been completed for airports in Karachi and Lahore.
- Each of these projects involves potential investments of around USD500 million.
Energy and Power Sector Transactions in Pipeline
Proposals for privatisation of petroleum sector entities are under consideration. These include OGDCL, SNGPL and SSGCL. The proposals are being examined by the Cabinet Committee on State-Owned Enterprises. The Privatisation Commission will initiate the process once a decision is taken.
The adviser emphasised that private sector participation is essential for improvements in the gas sector:
- Private players could import gas and utilise transmission infrastructure of Sui companies.
- They would pay wheeling charges for using the network.
- Significant groundwork has been completed for several transactions in the next fiscal year.
- These include five DISCOs such as IESCO, FESCO and GEPCO.
- Long-term concession agreements are planned for HESCO and SEPCO.
- Privatisation of HBFCL and ZTBL is also on the agenda.
- The Islamabad airport transaction is expected to move forward as well.
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