Earlier, authorities had explored a government-to-government framework for handing over the management of Islamabad International Airport. That approach has now been set aside.
Pakistan’s Privatisation Commission said last week that plans to outsource operations at the country’s three largest airports will now proceed through an open bidding process, citing strong interest from multiple investors. The airports involved are Islamabad, Lahore and Karachi.
Earlier, authorities had explored a government-to-government framework for handing over the management of Islamabad International Airport. That approach has now been set aside. In a statement, the Privatisation Ministry said the government is instead inviting bids for “long-term commercial concessions” covering Islamabad as well as the airports in Karachi and Lahore.
Officials indicated that the three facilities are likely to be operated under a public-private partnership structure.
Outlining the rationale, the Privatisation Ministry said the government aims to boost operational efficiency, raise service standards, increase revenues, modernise infrastructure and draw in private investment from within Pakistan and abroad.
The government said the selection process will be “competitive” and accessible to “all domestic and foreign investors, [which] will have a level playing field to participate in the bidding process.” It stressed that the move carries no political or diplomatic considerations and is driven solely by economic and procedural factors.
According to the ministry, the framework has been “designed to promote transparency and fair competition, deliver the most advantageous results for Pakistan’s economy and reinforce our enduring relationships with international partners.”
Officials said the shift away from a government-to-government model was prompted by a “high level of interest from various investors”, leading to the adoption of “an open bidding mode for all three airports”.
Pakistan also said it has held “constructive dialogue with entities from valued partner nations, including the UAE, Turkey [and] Saudi Arabia,” while rejecting claims that it had “cancelled” any “lease agreement” with the UAE for Islamabad airport. Such reports, the government said, were “contrary to the facts and misleading”, as no lease or agreement had been signed for Islamabad or any of the other airports.
