Pakistan’s Privatisation Commission has issued a formal rebuttal to circulating rumors suggesting the cancellation of a proposed airport management agreement with the United Arab Emirates. Contrary to speculative reports, the Commission clarified that no formal lease agreement had ever been executed between Pakistan and the UAE regarding Islamabad International Airport’s operations.
The government has been evaluating multiple strategic options for outsourcing operations at three key aviation facilities: Islamabad International Airport (IIAP), Karachi’s Jinnah International Airport, and Lahore’s Allama Iqbal International Airport. Initially, authorities had approved in August the potential transfer of Islamabad Airport’s management to UAE entities through a government-to-government framework arrangement.
This proposed arrangement contemplated comprehensive management contracts and extended commercial concessions aimed at modernizing airport infrastructure. However, in a significant policy shift last November, Pakistani officials transitioned from exclusive government-to-government negotiations to an open competitive bidding process for all three airports.
The decision emerged following substantial investor interest from multiple international parties beyond the UAE, including entities from Turkey and Saudi Arabia. This competitive approach ensures equal participation opportunities for both domestic and foreign investors while prioritizing transparency and optimal economic outcomes for Pakistan.
Authorities emphasized that this procedural modification stems exclusively from economic considerations rather than diplomatic or political factors. The competitive tender process aims to enhance operational efficiency, upgrade service quality, maximize revenue generation, and attract substantial private investment into Pakistan’s aviation infrastructure.
Islamabad International Airport, inaugurated in 2018, has encountered various operational and financial challenges that the outsourcing initiative seeks to address. Involving globally experienced airport operators promises to significantly improve performance standards at Pakistan’s premier aviation facilities.