Govt decides to outsource three major airports to attract FDI

outsource airports FDI

Islamabad: The federal government has decided to outsource operations of the three major international airports in Pakistan in an attempt to attract foreign direct investment (FDI).

In a meeting chaired by Prime Minister Shehbaz Sharif, it was decided to outsource the Jinnah International Airport Karachi, Allama Iqbal International Airport Lahore, and Islamabad International Airport to international operators to attract FDI and provide world-class facilities to passengers.

PM Shehbaz, on the matter, directed all concerned departments to take steps efficiently.

The huddle was apprised that outsourcing airports were a normal profit-seeking practice throughout the world.

According to reports, initially, Islamabad International Airport and International Airport Lahore will be outsourced under a public-private partnership (PPP).

The outsourcing of airports would not only provide revenue to the government but would also help improve facilities for international travellers.

Officials also briefed the meeting on the performance of Pakistan International Airlines (PIA). It was informed that the PIA collected revenue worth Rs172 billion in 2022, which is the highest amount in the history of the national airline.

Foreign Direct Investment drops by more than 50% in Jul-Nov

Foreign Direct Investment (FDI) has declined sharply by 51.4% during the first five months of the current fiscal year, the State Bank of Pakistan has said in a report this month.

According to the details shared by the central bank, Pakistan has attracted $430.1 million FDI during July-November of FY23 as against $885 million recorded in the same period in FY22.

During the period under review, inflows in FDI amounted to $681 million, whereas the total outflows were recorded at $251 million.

In November alone, FDI dropped by more than 48% compared to the same month last year.

Foreign Direct Investment drops by more than 50% in Jul-Nov

FDI reaches $1.87 billion in FY22

It is important to mention that FDI had clocked in at $1.87 billion in FY22. According to the SBP, Pakistan had attracted FDI amounting to $1.868 billion during FY22 compared to $1.82 billion during FY21, depicting an increase of $47.3 million.