Pakistan pursuing major aviation reforms including launching of new airlines
Pakistan is accelerating reforms in its aviation
sector, with plans to outsource key airports and support the launch of new
domestic airlines as part of a broader strategy to improve passenger services,
boost efficiency, and attract foreign investment.
Outsourcing major airports
The government has decided to outsource
operations of the country’s three largest airports—Islamabad, Lahore, and
Karachi—under a Public-Private Partnership (PPP) framework. Officials say the
move is aimed at modernizing airport infrastructure, improving service quality,
and bringing operations in line with international standards.
Islamabad
International Airport is leading the process. The government is pursuing a
government-to-government (G2G) arrangement with the Abu Dhabi Investment Group to
fast-track outsourcing without going through a conventional competitive bidding
process. Final approval from the UAE-based group is still awaited.
Read More Govt.
plans direct deal with UAE to outsource Islamabad Airport
For Allama Iqbal International Airport in Lahore
and Jinnah International Airport in Karachi, the PPP Authority has already
received due diligence reports. Authorities plan to replicate and refine the
Islamabad model when moving forward with these airports in the next phase.
As part of the reforms, the Civil Aviation Authority (CAA) has been
restructured to separate its regulatory responsibilities from commercial
airport operations. The state will continue to retain control over security and
air traffic management functions.
Launch of new domestic airlines
Alongside airport reforms, Pakistan is also
witnessing the entry of new private airlines aimed at improving domestic and
regional connectivity.
South Air,
which launched operations in November 2025, is focused on connecting smaller
cities in South Punjab, interior Sindh, Balochistan, and Khyber Pakhtunkhwa
with major urban hubs. Its inaugural commercial route operates between Karachi
and Multan using turboprop aircraft.
Another entrant, Air Karachi, is scheduled to begin
operations on March 23, 2026, coinciding with Pakistan Day. The airline plans
to operate domestic routes with an initial fleet of three Airbus A320 aircraft.
Read More Air
Karachi formally launched to revive city’s aviation heritage
Officials believe these developments mark the beginning of a new phase for
Pakistan’s aviation sector, characterized by increased competition, improved
regional connectivity, and stronger appeal to international investors.
Source:
Bloom Pakistan