ISLAMABAD: The Privatisation Commission (PC) has reached a critical milestone in the outsourcing and sale of Islamabad International Airport (IIA). During a high-level meeting on Tuesday, the PC Board formally constituted a Negotiation Committee to finalize the terms of a Financial Advisory Services Agreement (FASA) with the Asian Development Bank (ADB).
The meeting was chaired by Muhammad Ali, Adviser to the Prime Minister on Privatisation, who emphasized the need for a transparent and robust regulatory framework to oversee the process.
The decision to form this committee follows the Board’s previous approval to enter direct negotiations with the ADB. This move is being executed under the Privatisation Commission (Hiring of Financial Adviser) Regulations, 2018, which allows for the engagement of reputable international financial institutions for complex state-owned enterprise (SOE) transactions.
The newly formed Negotiation Committee is tasked with:
- Drafting the FASA: Defining the scope of work, fee structures, and timelines for the financial advisory services.
- Strategic Advisory: Ensuring the ADB’s terms align with Pakistan’s objective of maximizing value from the Islamabad Airport privatisation.
- Board Submission: Presenting finalized recommendations back to the PC Board for ultimate consideration and approval.
Strategic Context of the IIA Privatisation
The privatisation of Islamabad International Airport is part of a broader government strategy to involve the private sector in the management of major aviation hubs to improve service quality and operational efficiency.
The ADB’s role as a financial adviser is expected to bring international credibility to the transaction, potentially attracting global airport operators and investment consortiums.
