The government of Pakistan has announced that the privatization of Islamabad International Airport will proceed through open bidding, marking a shift from government-to-government arrangements. This decision follows the prioritization of the privatization of Pakistan International Airlines (PIA).
Standing Committee Meeting: Pakistan Prioritizes Open Bidding for Islamabad Airport Privatization
During a meeting held on January 30, 2026, the Senate Standing Committee, chaired by Senator Afnanullah Khan, was briefed by the Secretary of the Ministry of Privatization. The Secretary stated that Saudi Arabia, the United Arab Emirates, and Turkey have expressed interest in the airport, and the highest bidder will be awarded management rights.
The Secretary further disclosed that Karachi and Lahore airports are also slated for outsourcing. A financial adviser is being appointed to facilitate the process for Islamabad Airport, with the Asian Development Bank showing interest in assisting Pakistan in this endeavor.
Privatization Commission Secretary Usman Bajwa informed the committee that 24 state-owned entities are scheduled for privatization this year, including the major airports. The Prime Minister has instructed the enhancement of the Privatization Commission’s capacity and the hiring of top consultants to expedite the program.
The committee discussed the ongoing privatization of PIA, with questions raised about legal challenges involving the Arif Habib Group. The Secretary assured that due diligence had been conducted, and no legal impediments were found.
Concerns were voiced about allowing bidders without aviation experience, but it was clarified that the privatization process differs from traditional tendering and has been approved by international institutions. The privatization is expected to improve airport facilities and management, with the Civil Aviation Authority focusing on smaller airports.
Interest in the airport’s privatization has grown following PIA’s privatization. The process aims to enhance efficiency and reduce congestion, as highlighted by the challenges faced at Islamabad Airport. The government is committed to proceeding with privatization to improve service quality.
Published in SouthAsianDesk, January 31st, 2026
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