The Ministry of Aviation has reported that the Pakistan Airports Authority has authorized the transfer of management authority of Islamabad International Airport to a Turkish consortium for a 15-year period.

Aviation Secretary Ahsan Mangi presided over a Board of Directors meeting whereby the decision was made to transfer managerial authority of Islamabad Airport to the Turkish Consortium, TERG.

The bid from the Turkish consortium TERG, which offered 47.25% of the project cost, was later accepted by the board. The next stage, according to sources, will be to ask the federal cabinet for permission in order to complete the outsourcing arrangement.

The government intends to contract out the administration of the airports in Karachi and Lahore in addition to Islamabad as part of its larger aviation strategy.

A new PIA CEO has been appointed.

In the meantime, Pakistan International Airlines (PIA) is moving on with the appointment of a new permanent CEO. Imran Aslam Khan and Khurram Mushtaq, a senior PIA officer, have been shortlisted for the role out of 37 applications.

The shortlisted applicants have been sent to the PIA Board by the PIA HR department, which will interview them and select three for further consideration. The new CEO will then be chosen for a three-year term by the prime minister.

In an effort to generate $250 million, Federal Finance Minister Muhammad Aurangzeb said that Pakistan’s first Panda Bond would be introduced to the Chinese financial market.

The finance minister stated in a Bloomberg interview that the money should become available in six to nine months.

The government’s larger plan to stabilize the economy and fulfill its foreign financial commitments includes the Panda Bond, a debt instrument denominated in renminbi. “This initiative reflects our focus on sustainable economic growth and strengthening the foundation of the economy,” said the minister.

Visit by an IMF delegation
Additionally, he declared that next month, a mission from the International Monetary Fund (IMF) would travel to Pakistan. Minister Aurangzeb expressed hope that the terms of the IMF rescue package will be met, especially the objective of raising the tax-to-GDP ratio from 10% to 10.3%.

He emphasized that meeting this standard will make Pakistan’s financial condition more sustainable. “The IMF wants Pakistan to broaden its tax base, and we are determined to achieve this target,” he said.

In addition, the minister emphasized how Pakistan’s economy has stabilized in contrast to the previous two years. He attributed this recovery to successful fiscal policies and forecasted a 3.5% economic growth rate for the current fiscal year.

Pakistan’s economic rating has already been raised by international credit rating agencies, and the government plans to move it up to a single B category soon. “An improved credit rating will enhance our ability to secure funds from the international bond market,” he said.

Put an emphasis on growth driven by exports.
The minister also emphasized the importance of prioritizing export-led growth in order to change the nation’s economic DNA. “We aim to build a sustainable economy based on exports, which is essential for long-term prosperity,” he stated.

“The economy of Pakistan is at a turning point. Finance Minister Muhammad Aurangzeb said, “We are dedicated to meeting our financial goals and creating a more robust, resilient economy.

In an effort to further link its capital markets with China’s, Pakistan will issue Chinese Panda bonds as early as June, according to Finance Minister Muhammad Aurangzeb.

The Finance Minister claimed in an exclusive interview with the South China Morning Post that Pakistan has issued yuan bonds in accordance with Egypt’s example, thanks to credit improvement from the Beijing-Led Asian Infrastructure Investment Bank.

While in Hong Kong for the Asian Financial Forum, Muhammad Aurangzeb promised Beijing more collaboration on the next stage of the China-Pakistan Economic Corridor program.

He also urged China’s export-led industries and private sector to get more involved in transforming Pakistan’s debt-ridden economy.

Pakistan wants to raise between $200 million and $250 million from Chinese investors, according to the finance minister.