Business Recorder reported that the Planning Commission has proposed privatization of airports, and an initial partial privatization of Pakistan Railways, in a bid to create level playing field for all market players, in a paper titled 'Pakistan: New Growth Framework 2011'

It has further proposed that Civil Aviation Authority, by the very nature of its mandate, should not have control over any assets which make it a player in the aviation industry. The PR and PIA are currently facing severe financial challenges. The Planning Commission has proposed establishment of an independent body, empowered to charge market clearing price for PR.

The paper notes that in the aviation sector, CAA should continue pursuing 'open skies' policy in both passenger and cargo traffic. All airlines should be free to operate on routes of their choice.

In respect of Pakistan Railways, the Planning Commission paper has stated that "Pakistan Railways can adopt partial privatization measures, outsourcing stations' management, rail hospitals and allowing companies to run their container trains, letting suburban trains run as separate companies."

It added that "Pakistan Railways should gradually be unbundled and privatized completely. Unbundling may include privatization of rail track, stations management and services passenger and freight separately."

(Sourced from www.brecorder.com)