Pakistan’s Airport Outsourcing Plan faces delays because the Abu Dhabi Investment Group has not responded to Islamabad International Airport communications.
During a November 28, 2025 meeting, the Cabinet Committee on Privatisation (CCoP), chaired by Deputy Prime Minister Senator Ishaq Dar, reviewed the issue. Officials stated that repeated attempts to contact the UAE group have failed.
Consequently, the Privatisation Division plans to put Jinnah International Airport in Karachi and Allama Iqbal International Airport in Lahore on the active privatisation list. Simultaneously, authorities will send a final notice to the Abu Dhabi Investment Group seeking its position on Islamabad Airport. If the group ignores the request, officials will open all three airports to competitive bidding next Friday.
The government aims to enhance service quality, attract private investment, and manage airport operations efficiently. The Airport Outsourcing Plan covers landside and apron areas, including terminals, parking, commercial zones, aircraft parking, refueling, and boarding areas. Authorities will retain control of the airside, including runways and taxiways, for security and regulatory reasons.
Officials expect this initiative to boost revenue, optimise asset utilisation, and promote public-private collaboration. They also highlight that it aligns with Pakistan’s broader infrastructure development strategy.
The Islamabad International Airport outsourcing began under the Public Private Partnership Authority framework. The International Finance Corporation advised the transaction, and authorities issued a Request for Proposal under PPRA rules. The process now follows the Inter-Governmental Commercial Transactions Act, 2022, while plans for the other two airports remain preliminary.
Following directives from the Prime Minister, senior officials held multiple meetings with the Ministry of Defence and Pakistan Airports Authority. They examined options to fast-track the outsourcing projects. Authorities shared a draft summary, which the Ministry of Defence and the Privatisation Commission Board endorsed, recommending the inclusion of all three airports on the active list. The CCoP approved the plan on November 28.
Industry experts say the Abu Dhabi group’s unresponsiveness highlights the risks of government-to-government deals. They also note that open competitive bidding could ensure the Airport Outsourcing Plan continues without further delays.
