Islamabad airport to be privatized under a long-term concessional framework
The Privatisation
Commission has included Islamabad
International Airport in its active privatization list under a long-term
concession framework.
According to the commission, the government is
actively considering various options to outsource operations at three major
airports — Islamabad International Airport (IIAP), Karachi’s Jinnah
International Airport (JIAP), and Lahore’s Allama Iqbal International Airport
(AIIAP). These options include management contracts and long-term commercial
concessions.
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The government aims to enhance operational
efficiency, improve service delivery, maximize revenue, upgrade infrastructure,
and attract both domestic and international private investment. In pursuit of
these objectives, Pakistan has engaged in constructive discussions with
entities from partner countries such as the United Arab Emirates, Turkey and
Saudi Arabia, as well as other international stakeholders, in line with its
broader economic vision to modernize the aviation sector through mutually
beneficial cooperation.
The commission also rejected reports
suggesting that any proposed agreement for Islamabad International Airport had
been cancelled. It termed claims that Pakistan had scrapped a lease agreement
with the UAE as misleading, clarifying that no such agreement or lease had ever
been signed for any of the airports, including Islamabad.
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In November 2025, following strong investor
interest, the government decided to shift from a government-to-government (G2G)
approach to an open, competitive bidding process for all three airports. Under
this framework, both local and foreign investors will be able to participate on
an equal footing. The commission emphasized that the decision was based solely
on economic and procedural considerations and had no political or diplomatic
implications.
The proposed competitive process will prioritize
transparency and inclusivity, allowing participation from eligible entities
from partner nations and beyond. According to the commission, the approach is
intended to ensure fair competition, secure optimal outcomes for Pakistan’s
economy, and strengthen long-term partnerships with international investors.
Source:
Business Recorder