Pakistan's airport privatisation drive has taken a significant step forward, with the Privatisation Commission approving a financial adviser for the outsourcing of two major international airports. The decision, announced on Tuesday, marks a key milestone in the government's broader plan to hand over operational management of key state assets to private entities. Main Developments The commission's board of directors has greenlit the appointment of a consortium led by EY-Parthenon as the "top-ranked interested party" to serve as financial adviser for the outsourcing of Allama Iqbal International Airport in Lahore and Jinnah International Airport in Karachi. A negotiation committee has also been constituted to finalise the Financial Advisory Services Agreement (FASA) with the successful consortium. This development follows the commission's appointment last month of the Manila-based Asian Development Bank (ADB) as financial and transaction adviser for the outsourcing of New Islamabad International Airport. Together, these moves signal a coordinated push to bring private sector expertise into the management of Pakistan's busiest airports. Read also: Pakistan Goods Transport Strike Drags On as Talks Stall Over Fuel and Taxes Background The airport outsourcing initiative is part of a wider privatisation agenda that also targets the power sector. During the same meeting, the commission took up the privatisation of Lahore Electric Supply Company (Lesco) and Multan Electric Power Company (Mepco) as major transactions, requiring the appointment of financial advisers in line with applicable regulations. The commission said it would now initiate the process of appointing advisers for these two entities. Lesco and Mepco form the fourth batch of power distribution companies (Discos) earmarked for privatisation, with the first three batches already at various stages of the process. In the first batch, Faisalabad Electric has attracted a dozen local and international investors, and formal expressions of interest (EOIs) are currently under review. The deadline for EOIs for the other two Discos in that batch is two months away. Why It Matters The selection of a financial adviser is a critical early step in any privatisation or outsourcing deal, as this adviser will structure the transaction, conduct due diligence, and guide the process to ensure transparency and attract credible bidders. For the airports, private operation could lead to improved efficiency, better passenger services, and reduced financial burden on the government. For the Discos, privatisation aims to tackle inefficiencies and power theft, which have long plagued the sector. What's Next With the financial adviser approved, the next phase involves finalising the FASA and launching the formal outsourcing process for the two airports. Meanwhile, the commission will begin appointing advisers for Lesco and Mepco, and will continue reviewing EOIs for the first-batch Discos. The response to the Faisalabad Electric offering will be a key indicator of investor appetite for Pakistan's power sector.