Pakistan denies UAE airport lease claims, moves to open bidding for airports

Pakistan is considering outsourcing operations at three of its largest airports — Islamabad International Airport, Karachi’s Jinnah International Airport and Lahore’s Allama Iqbal International Airport — under management contracts or long-term commercial concessions, the government said.

As part of the plan, Islamabad International Airport has been included in the government’s active privatization program, aligning it with the ongoing process for airports in Karachi and Lahore.

The government said the initiative aims to improve operational efficiency, enhance passenger services, increase revenue, upgrade infrastructure and attract domestic and foreign private-sector investment.

Officials said Pakistan has held discussions with potential partners from several countries, including the United Arab Emirates, Turkey and Saudi Arabia, as well as other international stakeholders, as part of broader efforts to modernize the aviation sector.

The Privatization Commission also rejected what it described as misleading reports suggesting that Pakistan had cancelled a proposed agreement involving Islamabad International Airport or withdrawn from a lease arrangement with the UAE.

“No such agreement or lease was ever signed for any of the airports, including Islamabad International Airport,” the Commission said, adding that claims of a cancelled UAE lease were factually incorrect.

In November last year, the government decided to shift from a government-to-government approach to an open and competitive bidding process for all three airports after receiving strong interest from multiple investors, the commission said.

Under the revised approach, both domestic and international investors will be allowed to participate on equal terms. The government said the decision was based on economic and procedural considerations and was not linked to political or diplomatic factors.

The authorities said the competitive bidding process would prioritize transparency and inclusivity, allowing participation from investors from partner countries, including the UAE, as well as other eligible local and foreign entities.

The government said the move is intended to secure the best commercial outcome for Pakistan’s economy while maintaining strong relationships with international partners.