UAE group expresses interest in outsourcing Karachi and Lahore Airports

The UAE's AD Ports Group has expressed interest in the outsourcing of Karachi and Lahore airports.

In a formal communication with the Ministry of Aviation, Captain Mohammed Jumma Al Shamsi, Managing Director of AD Ports Group, indicated that the group is keen on the outsourcing of Karachi's Jinnah Terminal and Lahore's Allama Iqbal Airport, as reported by Express news.

As a result of this development, the terminal holding group will provide technical assistance to AD Ports.

The UAE group has requested data on annual passenger traffic at both airports.

Additionally, AD Ports has submitted 35 inquiries to the Ministry of Aviation, seeking information on the cargo business statistics of Karachi and Lahore airports, the number of employees, and the annual business volume.

According to sources, a Turkish group has also shown interest in the outsourcing of Karachi and Lahore airports.

Global Firms Show Interest in Pakistan’s Airport Outsourcing Plan

Earlier this year, the government’s move to outsource the country’s airports attracted the interest of seven international companies.

According to sources, companies based in Germany, France, the Netherlands, Qatar, UAE, Malaysia, and Turkiye expressed their willingness to participate in the privatisation process.

The aviation ministry authorities were entrusted with the responsibilities to deal with the matter.

Under the outsourcing plan, they held virtual meetings with Pakistani ambassadors stationed in the countries of interest to brief them comprehensively on the privatisation plan.

The briefing aimed to provide the envoys with detailed insights into the outsourcing plans and foster productive discussions with the potential investors.

Domestic investors were also encouraged to actively participate in the bidding process alongside global ones.

In a related development, Saudi Arabia, the UAE, and Qatar expressed their interest in purchasing the Pakistan International Airlines (PIA), which grappled with a plethora of crises.

According to sources, investors from the Gulf region engaged in discussions with high-ranking officials on the acquisition of the PIA.

The airports managed by the CAA faced issues including reduced efficiency, slow commercial activities, and customer dissatisfaction.

Last year, the government divided the CAA into two separate entities, creating a Pakistan Airport Authority (PAA).

The government’s segregation plan included outsourcing of different airports in two phases.

The first phase encompassed the corporatisation of the airports to attract private investors.

The second phase envisaged the completion of this transaction by involving the Privatisation Commission and appointing financial advisers and investment banking firms.