ADB to advise Pakistan on Islamabad airport privatization in $1.6 million deal

Pakistan signed a $1.6 million agreement with the Asian Development Bank (ADB) on Wednesday to oversee the financial structuring of Islamabad International Airport's planned privatization.

The deal marks a step in the government's push to bring private investment into key state-owned infrastructure.

What is the ADB's role in the Islamabad airport deal?

The Transaction Advisory Services Agreement, signed between the Privatization Commission and the ADB, appoints the Manila-based lender as financial adviser for the proposed outsourcing of Islamabad airport's operations.

The ADB will provide technical, financial, legal, environmental and commercial advisory services to structure the transaction to international standards. It will also run a competitive bidding process aimed at attracting global airport operators and investors, the commission said.

Who signed the Islamabad airport privatization agreement?

The agreement was signed by Emma Fan, country director of the ADB's Pakistan Resident Mission, and Shahid Dayo, director general of the Privatization Commission.

Muhammad Ali, adviser to the prime minister on privatization and chairman of the Privatization Commission, attended alongside senior government and ADB officials. Ali told Nukta the government would pay the ADB $1.6 million for its advisory services.

How much is the Islamabad airport outsourcing deal worth?

"The overall outsourcing transaction for Islamabad airport is expected to be worth around $100 million, and the ADB, as a development finance institution, offered a competitive price for the advisory work," Ali said. The government is pursuing the privatization of airport operations as part of a broader program to boost private sector participation in state-owned enterprises while retaining public ownership of strategic assets.

Will Karachi and Lahore airports also be privatized?

Usman Akhter Bajwa, secretary of the Privatization Commission, told the National Assembly's Standing Committee on Privatization on Wednesday that the federal cabinet had approved outsourcing Islamabad airport under a concession model, and that the commission's board had appointed the ADB as transaction adviser.

He said the government had also approved similar transactions for Lahore and Karachi airports, with financial advisers being selected. Bids are under evaluation, and a decision is expected within two weeks before the next phase of the Lahore airport transaction begins.

Will the government still own the airports after outsourcing?

Addressing the Senate Standing Committee on Privatization on Tuesday, Privatization Secretary Hammad Shamimi said the initiative would transfer airport operations, not ownership, to private operators.

He said the government would retain ownership while private operators managed commercial and operational functions, including parking facilities, duty-free outlets, restaurants and passenger services. The government also hopes the move will cut passenger processing times, which currently can exceed two hours at some airports.