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Senate committee reviews privatization budget, PIACL progress, and airport service outsourcing

by Sub News
January 30, 2026
Senate committee reviews privatization budget, PIACL progress, and airport service outsourcing
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Islamabad, January 30, 2026: The Senate Standing Committee on Privatization, chaired by Senator Dr. Afnan Ullah Khan, convened to review budget allocation and utilization for the last six months, deliberate on the proposed budget for the next financial year, assess the post-privatization status of PIACL employees, and examine developments regarding the outsourcing of services at Islamabad International Airport (IIAP). The meeting was attended by Senators Bilal Ahmed Khan, Khalil Tahir, Umer Farooq, and Palwasha Mohammad Zai Khan.

The Committee reviewed the current budget utilization of the Ministry of Privatization, noting that both the Privatization Division and the Privatization Commission operate with a limited budget, primarily covering employee-related expenses. The Commission presented a proposal to enhance its annual budget to hire market-based experts on competitive salaries, aimed at strengthening institutional capacity and accelerating the privatization process in the coming year.

Committee members questioned the need for new hiring, given the successful privatization of PIACL with the existing workforce. The Commission clarified that specialized market experts are essential, as each expert can manage only two projects at a time. Sector-specific expertise, particularly for the privatization of DISCOs, was highlighted as critical. The Chairman welcomed the proposal and agreed in principle to enhance operational capacity through expert hiring. It was also noted that the Ministry currently has no ongoing PSDP projects, and therefore does not require PSDP allocations.

On the privatization of PIACL, the Committee was informed that the process is expected to be completed within 90 to 120 days. Senator Palwasha Mohammad Zai Khan requested detailed information regarding the properties of PIA Holding Company Limited (HoldCo), including hangars, spare parts, and technical assets, which the Secretary of the Privatization Commission assured would be provided in the next meeting. The Chairman commended the Ministry and Commission for the successful privatization of PIA.

The Committee also reviewed the outsourcing of landside services at IIAP, noting the deteriorating condition of passenger facilities, including food services and restrooms. Members emphasized that service delivery could be improved through outsourcing, as governments are not ideally positioned to manage commercial operations. The Commission confirmed that outsourcing airport services is a priority.

The Committee recommended integrating outsourcing efforts at major airports with smaller airports, such as Quetta and Sukkur, to ensure uniform service improvements. The Chairman directed the Commission to expedite the process, assured full Committee support for enhancing airport facilities, and emphasized the protection of passengers’ personal data during outsourcing.

Tags: Bilal Ahmed KhanDr. Afnan Ullah Khanfinancial yearIIAPIslamabadIslamabad International AirportKhalil TahirMinistry of PrivatizationPakistanPalwasha Mohammad Zai KhanPIACL employeesPrivatizationPrivatization DivisionPSDP projectsSenateSenate standing committeeUmer Farooq
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