ISLAMABAD: The federal government is reported to have formally expanded its airport privatisation program to include three major facilities, with Lahore’s Allama Iqbal International and Karachi’s Jinnah International already listed and Islamabad International Airport now added to the active list.
According to a Privatisation Commission spokesman, there is a “strong possibility” that the Asian Development Bank (ADB) will be appointed as the financial advisor for the Lahore and Karachi airports.
Meanwhile, the process to finalise a consultative consortium for Islamabad International Airport is expected to be completed soon.
The development marks a shift in the government’s strategy for airport management.
Under the plan, the Privatisation Commission intends to hand over the management and operations of these airports to private firms — local or foreign — through long-term concession agreements. Officials clarified that the move does not entail an outright sale of the assets, but rather outsourcing day-to-day operations, commercial activities, and infrastructure development to improve efficiency and service standards.
It is pertinent to mention here that the decision comes amid ongoing concerns over inefficiencies, financial losses, and under-development at major state-run airports. The airport initiative forms part of a broader privatisation drive targeting several state-owned entities, including Pakistan International Airlines (PIA).
Earlier, the government had explored government-to-government (G2G) arrangements, particularly for Islamabad airport, with interest expressed by countries including the UAE. However, those talks did not materialise. With growing investor interest, the process has now shifted to open competitive bidding.
Sources said Lahore and Karachi airports had already been in the pipeline for privatisation. Islamabad airport was formally added to the active privatisation list around January 2026.
Next steps
The appointment of financial advisors is considered a key step before inviting bids. The ADB is being considered for Lahore and Karachi, given its prior involvement in infrastructure and public-private partnership projects in Pakistan. For Islamabad, the Privatisation Commission said a consultative consortium would be finalised shortly to structure the transaction.
Officials maintain that the primary goals are to upgrade infrastructure, enhance passenger services, increase non-aeronautical revenue, and attract private investment into the aviation sector.
