Privatisation drive: Govt shifts from G2G approach to open bidding for Islamabad airport

• Privatisation of three airports aimed at improving efficiency, revenue.
• Ministry refutes reports claiming cancellation of lease with UAE.
• Competitive process for outsourcing will prioritise inclusivity.
  

ISLAMABAD: Amid the government’s ongoing privatisation drive of state-owned entities, the federal government has announced the inclusion of Islamabad International Airport (IIAP) in its active privatisation programme.

The move, the Ministry of Privatisation said, is consistent with the ongoing privatisation process for Karachi’s Jinnah International Airport (JIAP) and Lahore’s Allama Iqbal International Airport (AIIAP).

The privatisation of the three key airports aims to enhance efficiency, improve service delivery, maximise revenue generation, upgrade infrastructure, and attract domestic and international private-sector investment, the ministry added.

The development, as reported by The News, effectively ends months of stalled talks with the United Arab Emirates, officials said.

Pakistan has held discussions with potential partners from the UAE, Turkey, Saudi Arabia, and other international players as part of a broader effort to modernise the aviation sector.

The government plans to outsource airport operations through management contracts or long-term commercial concessions to improve efficiency, upgrade infrastructure, and boost revenue.

Officials stressed that the shift is based purely on economic and procedural considerations. The competitive process, they said, is designed to ensure transparency, fair competition, and the best possible outcome for Pakistan’s economy, while keeping doors open for partners from friendly countries and beyond.

The ministry further underscored ongoing constructive engagement with entities from valued partner nations, including the United Arab Emirates, Turkey, Saudi Arabia, as well as other international stakeholders.

Addressing reports suggesting the cancellation of a proposed agreement with the UAE for Islamabad airport, the ministry categorically refuted the claims, stating that “no such agreement or lease was ever signed for any of the airports, including Islamabad International Airport.”

The competitive outsourcing process will prioritise inclusivity, welcoming participation from all eligible entities — local and foreign — including those from partner nations and beyond.

“This approach is intended to promote transparency and fair competition, deliver optimal results for Pakistan’s economy, and reinforce enduring relationships with international partners,” the ministry said.