The federal government has prioritized the outsourcing of Islamabad International Airport through an open and competitive bidding process following the privatization of Pakistan International Airlines. Officials informed a parliamentary committee that airport management will be awarded to the bidder offering the highest value, with a financial adviser appointed to structure the transaction and oversee the bidding process. Several countries and companies, including Saudi Arabia, the UAE, and Turkey, have already expressed interest in airport outsourcing. The government plans to outsource Islamabad Airport first, followed by Karachi and Lahore airports in phases, while redeploying existing staff from major airports to smaller airports across the country.
Interest in airport privatization has grown significantly after PIA’s privatization, with officials highlighting operational challenges at major airports that have affected passenger experience, including delays of up to one hour at Islamabad International Airport. Committee members emphasized the need to either privatize or urgently improve facilities, noting that Karachi Airport also faces infrastructure and hygiene issues. Outsourcing major airports is expected to allow the Civil Aviation Authority to focus resources on improving operations at smaller airports, and the Asian Development Bank has expressed interest in supporting the initiative.
Government-to-government outsourcing options were previously explored but not finalized, leading to the inclusion of major airports in the Privatization Programme through competitive bidding. Separately, the government currently holds 25 percent of PIA shares valued at 45 billion rupees. The Arif Habib consortium, which has engaged a US-based aviation consultancy, plans to invest 125 billion rupees in PIA, with an expected deposit of 10 billion rupees within three months. PIA’s financial close is anticipated within three months, with a detailed business plan to be presented within one month, and its valuation is projected to rise to 180 billion rupees from the current 9 billion rupees. Officials noted that shutting down PIA would have cost the government nearly 300 billion rupees, including liabilities and pension payments of 34 billion rupees, and the airline’s fleet is planned to expand to 40 aircraft over the next four years.
