Ministry nods to leasing out Islamabad airport for 15 years

ISLAMABAD: The outsourcing of Islamabad Airport for a period of 15 years has been granted approval with the aim of enhancing its operational efficiency.

Sources have confirmed that the Finance Ministry has greenlit this initiative.

Having commenced full operations in May 2018, following the replacement of the now-defunct Benazir Bhutto International Airport, the airport stands as the nation’s largest airfield, boasting substantial cargo and passenger handling capacity. Its official website reports an annual throughput of nine million passengers.

The Islamabad Airport ranks as the second busiest in the nation, trailing only behind the Jinnah International Airport in Karachi, the commercial hub of Pakistan.

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Former aviation minister Khawaja Saad Rafique had clarified to the National Assembly that this move does not entail privatization; rather, it seeks to enlist capable operators to elevate airport operations.

In order to ensure impartiality, an open competitive bidding process will be enforced within 15 days, facilitating the selection of the most qualified bidder to manage the airport, according to insiders speaking to Hum TV.

Reliable sources have revealed that the outsourcing arrangement for Islamabad Airport involves an upfront payment of $100 million by the third party. Failure to make this payment will lead to the termination of the contract, without any reimbursement of the advance sum.

The third party will undertake administrative affairs, secure financial closure, oversee design and construction, as well as assume responsibility for service charges, rental for commercial spaces, and currency exchange rates, as outlined by insiders. However, customs, site security, and immigration services will remain under the jurisdiction of Civil Aviation.

Furthermore, the third party will have the opportunity to develop shopping malls and brand outlets within the airport premises, sources have disclosed.

It is anticipated that the second phase of this initiative will encompass the outsourcing of Jinnah International Airport in Karachi and Lahore Airport.