The federal government has prioritized the privatization of Islamabad International Airport, following the successful handover of Pakistan International Airlines (PIA) to the Arif Habib-led consortium. The airport will be outsourced through a transparent open competitive bidding process. Officials confirmed no government-to-government (G2G) deals will be involved.
Privatisation Commission Secretary Usman Akhtar Bajwa briefed the Senate Standing Committee on Privatisation, chaired by Senator Dr Afnanullah Khan, on Friday. He said that Islamabad International Airport will be awarded to the highest bidder. Countries such as Saudi Arabia, the UAE, and Türkiye have already shown interest in the bidding process.
“Islamabad International Airport will be the first major airport to follow this open-bidding model,” Bajwa said, adding that Karachi International Airport and Lahore’s Allama Iqbal International Airport will follow in similar privatization efforts.
A financial adviser will be appointed soon to oversee the transaction, with the Asian Development Bank (ADB) providing technical and financial support. Bajwa explained that staff currently working at major airports would be redeployed to regional airports, allowing the Civil Aviation Authority (CAA) to focus on upgrading secondary airports across the country.
The privatization drive is part of a broader government initiative targeting 24 state-owned enterprises this year. Along with Islamabad, Karachi, and Lahore airports, five power distribution companies (DISCOs) and two power generation companies (GENCOs) are included. Processes for DISCOs and GENCOs are already underway.
During the briefing, committee members raised concerns about allowing bidders without prior airport management experience. Bajwa clarified that airport concessions operate under a specialized framework approved by the federal government and international financial institutions.
Operational issues at Islamabad International Airport, including entry delays of up to an hour, were also discussed. Officials said private management is expected to improve efficiency, infrastructure, and passenger services.
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The government aims to modernize Pakistan’s aviation infrastructure, enhance passenger experience, and reduce fiscal pressure through this structured and competitive approach. The privatization of Islamabad International Airport marks a key step in transforming the country’s major airports and boosting the overall aviation sector.
