ISLAMABAD: The Privatisation Commission Board on Friday approved the signing of a transaction advisory services agreement (TASA) with the Asian Development Bank (ADB) for the outsourcing of operations of Islamabad International Airport.

In February, the board formed a negotiation committee to engage with the ADB and discuss terms for a financial advisory services agreement. This committee would undertake negotiations and submit recommendations to the board for approval.

The meeting, presided over by Adviser to the Prime Minister on Privatisation and Privatisation Commission Chairman Muhammad Ali, reviewed the terms of the agreement negotiated with the ADB and approved it.

The board expressed confidence that the ADB, with its expertise and experience, would be able to successfully complete this important transaction swiftly while ensuring maximum competition and transparency.

Islamabad International Airport will be outsourced to a qualified private sector operator under a long-term concession framework through a competitive bidding process. The privatisation is expected to enhance operational efficiency, improve passenger experience, and align airport services with international best practices.

The government is targeting the privatisation of Islamabad International Airport during the current fiscal year.

The contract appointing ADB as transaction adviser was revised with certain changes to its conditions, including some indemnity clauses due to its multilateral status. The negotiated terms of the contract proposed by the Privatisation Commission were approved by the Cabinet Committee on Privatisation.

The process for hiring financial advisers for outsourcing the international airports in Karachi and Lahore would begin immediately, as previous government-to-government discussions had not progressed as expected.

Both airports were expected to attract more than $500 million each in fresh investment, Ali told Dawn a few days ago.

The board also approved the appointment of chartered accountancy firm BDO Ebrahim and Company as external auditors to audit the three financial years from 2025–26 to 2027–28, on the recommendation of the board’s Audit Committee.

It resolved to continue ensuring transparency, efficiency, and the maintenance of high standards to further strengthen investor confidence in the government’s privatisation programme, according to an official statement.

In June 2024, the government made privatisation its key priority, and directed that Islamabad International Airport be outsourced first.

In his FY25 budget speech, Finance Minister Mohammad Aurangzeb said the government should not be in business.

“The prime minister strongly believes in reducing government interference in the commercial space and promoting the private sector; that is why we have made privatisation a key priority.”