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The Senate Standing Committee on Privatization on Tuesday reviewed budget utilization for the past six months and discussed key developments related to privatization and outsourcing, including the post-privatization status of PIA employees and service conditions at Islamabad International Airport.
The meeting, chaired by Senator Dr Afnan Ullah Khan and Senators Bilal Ahmed Khan, Khalil Tahir, Umar Farooq and Palwasha Mohammad Zai Khan were also in attendance.
Officials informed the committee that the Ministry of Privatization and the Privatization Commission are operating on a limited budget, with most of the allocation consumed by employee-related expenses. The Commission briefed members on a proposal to increase its annual budget to allow the hiring of market-based experts on competitive salaries, arguing that this step is necessary to strengthen capacity and speed up upcoming privatization initiatives.
Committee members questioned the need for new hiring, particularly after the successful privatization of Pakistan International Airlines Corporation Limited (PIACL) with the existing workforce. Responding to the concern, the Privatization Commission explained that specialized experts are required for complex transactions, noting that one expert can handle only one or two projects at a time. The need for sector-specific expertise, especially for the privatization of power distribution companies (DISCOs), was also highlighted.
Chairman Senator Dr Afnan Ullah Khan appreciated the Commission’s performance and agreed in principle with the proposal, stressing that timely privatization requires the right technical support. The committee was also informed that the Ministry currently has no Public Sector Development Program (PSDP) projects and therefore does not require PSDP funding.
During the meeting, members held a detailed discussion on the PIACL privatization process. The Secretary of the Privatization Commission told the committee that the transaction is expected to be completed within 90 to 120 days. Senator Palwasha Mohammad Zai Khan sought a detailed briefing on the assets of PIA Holding Company Limited, including hangars, spare parts and technical equipment. The Secretary assured members that complete information would be shared in the next session.
The committee was also briefed on plans to outsource landside services at Islamabad International Airport. Members pointed to the poor condition of passenger facilities, particularly food services and washrooms, and observed that governments are often ill-equipped to manage commercial operations efficiently. Officials said outsourcing airport services remains a priority.
The committee recommended that outsourcing at major airports should be linked with smaller airports such as Quetta and Sukkur to ensure uniform service standards, rather than improving facilities in phases. The chairman directed the Commission to expedite the process and assured full committee support, while also stressing the need to protect passengers’ personal data during outsourcing.
