Islamabad International Airport privatisation gains momentum: open bidding planned

WEB DESK: Following the recent successful privatisation and handover of Pakistan International Airlines (PIA) to the Arif Habib-led consortium, the federal government has prioritised the privatisation of Islamabad International Airport (IIA), also known as Islamabad International Airport.

Open competitive bidding planned

Privatisation Commission Secretary Usman Akhtar Bajwa briefed the Senate Standing Committee on Privatisation, chaired by Senator Dr Afnanullah Khan, on Friday, confirming that the airport will be outsourced through a transparent open competitive bidding process. The facility will be awarded to the highest bidder, with no government-to-government (G2G) arrangements planned.

Secretary Bajwa informed the committee that Saudi Arabia, the United Arab Emirates (UAE) and the Republic of Türkiye have already expressed interest in participating in the bidding process.

“Islamabad International Airport will be the first major airport to follow this open-bidding model,” he said, adding that Karachi International Airport and Allama Iqbal International Airport (Lahore) are next in line for similar privatisation.

ADB support, adviser appointment

A financial adviser will be appointed shortly to oversee the transaction for Islamabad International Airport. The Asian Development Bank (ADB) has indicated its readiness to provide technical and financial assistance for the overall airport privatisation programme.

Bajwa said staff currently working at major airports would be redeployed to smaller regional airports once the key hubs are privatised, enabling the Civil Aviation Authority (CAA) to focus resources on upgrading secondary airports across the country.

Broader privatisation drive

The government has targeted 24 state-owned enterprises for privatisation during the current year. These include Islamabad, Karachi and Lahore airports, five power distribution companies (DISCOs) and two power generation companies (GENCOs). Privatisation processes for the DISCOs and GENCOs have already commenced.

Prime Minister Shehbaz Sharif has directed the Privatisation Commission to strengthen its institutional capacity by engaging top-tier consultants. Currently, six consultants are assisting the commission in accelerating the privatisation drive.

PIA sale, operational concerns discussed

Responding to questions from Senator Palwasha Muhammad Zia Khan regarding the PIA privatisation, Secretary Bajwa said that although the process was not completed in 2024 as initially planned, it has now been successfully finalised. He assured the committee that thorough due diligence was conducted on the winning bidder, the Arif Habib Group, with no blacklisting, adverse court rulings or unresolved legal issues identified.

Some committee members expressed concerns over allowing bidders without prior airport management experience. Chairman Senator Dr Afnanullah Khan noted that airport concessions operate under a different framework from conventional tenders, with participation rules already approved by the federal government and international financial institutions.

Bajwa also highlighted operational challenges at Islamabad International Airport, including entry delays of up to one hour, and said private management was expected to ensure faster services, better infrastructure and improved efficiency.

The briefing concluded with informal discussion on the merits of continued government operation of airports, including light-hearted remarks about recurring maintenance issues at Jinnah International Airport in Karachi.

Through this structured, competitive and transparent approach, the government aims to improve passenger experience, reduce fiscal pressure and modernise Pakistan’s key aviation infrastructure.