Pakistan government said on Friday its planned privatization of the airport in the federal capital will take place through an open bidding process instead of government-to-government deals.
The government is keen to privatise the Islamabad International Airport after the successful sale of national carrier, Pakistan International Airlines, to a private consortium last year.
The government told a Senate committee that companies and investors from Saudi Arabia, the United Arab Emirates, and Turkey have already shown interest in acquiring management of the airport.
The management will be awarded to the highest bidder, officials told the Senate Standing Committee on Privatization.
The meeting, chaired by Senator Afnanullah Khan, was apprised that the airport is a top priority for the government after the sale of PIA.
A financial adviser is being hired for the Islamabad Airport transaction, and the Asian Development Bank has shown interest in supporting Pakistan’s airport outsourcing program.
According to the Privatization Commission Secretary Usman Bajwa, Karachi and Lahore airports will also be outsourced at a later stage.
Officials said that once the three major airports are outsourced, existing staff will be reassigned to smaller airports across the country.
Bajwa added that 24 state-owned enterprises are scheduled for privatization this year, including the country’s three largest airports.
He said the privatization process for five electricity distribution companies and two power generation companies has already begun.
Bajwa added that the prime minister has directed the government to strengthen the Privatization Commission and hire top consultants to speed up the process. The commission currently has six consultants.
Lawmakers were also briefed on the privatization of PIA.
Senator Palwasha Khan questioned whether legal cases involving a potential bidder, the Arif Habib Group, had been resolved. The privatization secretary said due diligence had been conducted and that no court ruling or blacklisting had been reported to the commission.
Bajwa also said the commission had not received any decision from the Competition Commission related to the group.
Senator Bilal Ahmed raised concerns about allowing bidders without aviation experience to participate in the process. Khan, the committee’s chairman, said no such requirement had been set, explaining that privatization differs from a standard tender and allows consortium participation under approved rules.
During the discussion, officials said Islamabad Airport should either be privatized or significantly upgraded, citing congestion and operational challenges. Senator Palwasha questioned whether the government was handing over too many responsibilities to private parties.
The chairman responded that poor conditions at major airports highlight the need for reform and reiterated that the government intends to proceed with privatization.
Officials confirmed that interest from foreign operators remains strong and said outsourcing major airports would allow the Civil Aviation Authority to focus on improving and managing smaller airports nationwide.
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