The Privatization Commission approved key advisers on Tuesday to manage the outsourcing of Karachi and Lahore airports and the sale of two major power companies.
The government of Pakistan took a major step toward economic reforms on Tuesday. The Privatization Commission approved financial advisers for major national projects, including two key international airports and two large power distribution companies.
Airport Outsourcing
The Privatization Commission selected a consortium led by EY-Parthenon as the top financial adviser for the outsourcing process. They will handle Jinnah International Airport in Karachi and Allama Iqbal International Airport in Lahore. The commission formed a special negotiation committee to finalize the formal agreement with EY-Parthenon.
Meanwhile, the Manila-based Asian Development Bank (ADB) took charge of the New Islamabad International Airport. It was appointed last month.
Outsourcing means giving operational control of a government facility to a private company. The government retains full ownership of the property and the private firm manages daily operations.
Privatization of LESCO and MEPCO
The board also approved the privatization process for Lahore Electric Supply Company (LESCO) and Multan Electric Power Company (MEPCO).
The government will now appoint dedicated financial advisers for these transactions. LESCO and MEPCO represent the fourth batch of power distribution companies selected for sale.
Privatization moves forward across other power distribution companies as well. Faisalabad Electric (FESCO) attracted interest from twelve local and international investors. The commission currently reviews their formal expressions of interest. Submissions for two other power companies remain open for two months.
