Government Prioritizes Privatization of Islamabad Airport After PIA, Senate Committee Told

Islamabad: The federal government has declared the privatization of Islamabad International Airport a top priority after Pakistan International Airlines (PIA), Secretary of the Ministry of Privatization Usman Bajwa told a meeting of the Senate Standing Committee on Privatization.

The committee meeting, chaired by Senator Afnan Ullah Khan, was briefed that Saudi Arabia, the United Arab Emirates, and Türkiye have expressed interest in the privatization of Islamabad Airport. Usman Bajwa said the government would opt for open bidding rather than government-to-government privatization.

He explained that the airport’s management would be handed over to the country or company offering the highest bid. After Islamabad, Karachi and Lahore airports would also be outsourced, he added.

The secretary said a financial adviser is being appointed for the outsourcing of Islamabad Airport. He further noted that the Asian Development Bank (ADB) has shown interest in assisting Pakistan with airport outsourcing. After the outsourcing of the three major airports, the existing staff would be deployed at smaller airports across the country.

Usman Bajwa informed the committee that the privatization of PIA could not be completed in 2024. During the meeting, Senator Palwasha Khan asked about a petition pending in the Supreme Court against the Arif Habib Group. In response, the secretary said the Privatization Commission had carried out due diligence through relevant institutions and no adverse action or blacklisting against the company had come to light. He added that no court verdict on the matter had been received by the commission.

Senator Palwasha further questioned whether the Competition Commission’s decision related to Aisha Steel against the Arif Habib Group had been obtained. The secretary replied that no such decision had been received from any institution.

Senator Bilal Ahmed raised concerns over allowing bidders without aviation experience to participate in the process. Senator Afnan Ullah Khan responded that no such condition had been set for privatization. Senator Bilal remarked that in the past, many bidders were disqualified for failing to meet technical criteria.

The committee chairman clarified that privatization should not be compared to a standard tendering process, adding that the privatization procedure has been approved by the government and international institutions. He said consortia had been allowed to participate from the outset and stressed that Islamabad Airport should either be privatized or its facilities significantly improved.

Usman Bajwa said interest in airport privatization has increased following the PIA privatization process. He noted that passengers often face delays of up to an hour just to enter Islamabad International Airport, which underscores the need for privatization.

During the discussion, Senator Palwasha Khan questioned whether the government could no longer manage projects on its own. The committee chairman remarked on the poor condition of Karachi Airport, to which Senator Palwasha responded with a lighter comment comparing the situation to Parliament.

Concluding the briefing, the secretary reiterated that companies from Saudi Arabia, Türkiye, and the UAE are keen to operate Pakistani airports, while ADB is also interested in supporting the outsourcing process. He said outsourcing major airports would enable the Civil Aviation Authority to focus on improving smaller airports.