The federal government has announced that Islamabad International Airport will be outsourced through an open and competitive bidding process. This move follows the privatization of Pakistan International Airlines (PIA) and marks a major step in modernizing Pakistan’s aviation sector.
Officials briefing a parliamentary committee said that instead of government-to-government deals, the airport will be handed over to the bidder offering the highest value. A financial adviser has been appointed to structure the process and manage the bidding.
Interest in Islamabad Airport’s outsourcing has already come from countries and companies in Saudi Arabia, the UAE, and Turkey. The government plans to gradually outsource other major airports, including Karachi and Lahore. Existing staff at these airports will be reassigned to smaller airports to improve overall operations.
Privatization officials highlighted that the demand for outsourcing has increased significantly after PIA’s sale. Operational challenges at major airports have affected passengers, with delays sometimes exceeding an hour at Islamabad International Airport. Committee Chairman Senator Afnan Ullah Khan emphasized the need to either privatize the airport or urgently upgrade facilities. Karachi Airport, he noted, also struggles with infrastructure and hygiene issues.
Outsourcing large airports is expected to allow the Civil Aviation Authority to focus on improving smaller airports. The Asian Development Bank has expressed interest in supporting this program. Earlier, the government had explored direct agreements with other countries, but no formal deals were made.
In related developments, the PIA privatization is progressing, with the government holding a 25 percent stake valued at Rs. 45 billion. The Arif Habib-led consortium plans to invest Rs. 125 billion in the airline and will deposit Rs. 10 billion with the government within three months. Once fully operational, PIA’s valuation is expected to rise from Rs. 9 billion to Rs. 180 billion, while its fleet will expand to 40 aircraft over four years. Officials noted that shutting down PIA would have cost the government nearly Rs. 300 billion.
FAQs
Q1: Why is Islamabad Airport being outsourced?
Outsourcing is aimed at improving operational efficiency, upgrading facilities, and attracting investment, following the privatization of PIA.
Q2: Who can bid for the airport?
Both domestic and international companies or consortiums can participate in the competitive bidding process.
Q3: Will current airport staff lose their jobs?
No. Staff at major airports will be reassigned to smaller airports across Pakistan.
Q4: Are other airports also being considered for outsourcing?
Yes, the government plans to outsource Karachi and Lahore airports in phases.
Q5: How will outsourcing benefit passengers?
It is expected to reduce delays, improve airport facilities, and enhance the overall travel experience.
Conclusion:
Pakistan’s move to outsource major airports through open bidding represents a strategic shift in aviation management. By involving competitive investors and focusing on operational improvements, the government aims to modernize airport services, enhance passenger experience, and strengthen the overall aviation sector while ensuring smooth transition for existing staff.
Rana Shahriyar is a dedicated content writer and contributor at 8171 Rashan Program. With a strong interest in social welfare programs and government initiatives, his work focuses on delivering clear, reliable, and easy to understand information for the public.