ISLAMABAD: The government has approved to add Islamabad International Airport to its active privatisation list and will auction operations of the country’s three busiest airports through open, competitive bidding, ending months of stalled talks with the United Arab Emirates, officials said.
The decision covers the Islamabad International Airport, Karachi’s Jinnah International Airport and Lahore’s Allama Iqbal International Airport. The government aims to outsource operations through management contracts or long-term commercial concessions to improve efficiency, upgrade infrastructure and boost revenue.
A senior official at the Privatisation Commission told The News that Islamabad airport was earlier being considered for outsourcing to the UAE under a government-to-government arrangement. The talks hit a deadlock after repeated delays by the UAE side in nominating an operating entity.
Following this, the government approved Islamabad airport’s inclusion in the active privatisation programme, bringing it in line with Karachi and Lahore, which were already in the process.
Meanwhile, the Privatisation Commission said that no agreement or lease was ever signed for any of the airports, including Islamabad International Airport. It said the government’s main goals are better service for passengers, modern facilities, stronger revenue streams and fresh investment from both local and foreign companies.
Pakistan has held discussions with potential partners from the UAE, Turkey, Saudi Arabia and other international players as part of a broader push to modernise the aviation sector.
In November 2025, amid strong investor interest, the government decided to drop the government-to-government model and move to open bidding for all the three airports. Under this approach, all qualified domestic and foreign investors will compete on equal terms.
Officials stressed the shift is based purely on economic and procedural considerations. The competitive process, they said, is designed to ensure transparency, fair competition and the best possible outcome for Pakistan’s economy, while keeping doors open for partners from friendly countries and beyond.
