ISLAMABAD: The Privatisation Commission of Pakistan has categoricallydenied assertions in certain media outlets that a government-to-governmentdeal with the United Arab Emirates for managing Islamabad InternationalAirport had been cancelled. The commission described such reports asinaccurate, pointing out that no binding lease agreement was ever signedfor the facility or any other airport in the country. This officialrebuttal follows conflicting narratives in regional publications, some ofwhich attributed the stalled talks to delays from the UAE side indesignating an operating entity.
The government’s position highlights a deliberate policy shift announced inNovember of the previous year, moving away from bilateral governmentframeworks toward transparent open bidding for airport concessions. Thisadjustment was driven by robust expressions of interest from multipleinternational and domestic investors, aiming to secure optimal economicoutcomes. Authorities maintained that the change carried no political ordiplomatic undertones, but was rooted entirely in procedural efficiency andmaximizing value for the national exchequer.
Discussions with the UAE had progressed under a proposedgovernment-to-government arrangement, initially focused solely on IslamabadInternational Airport. However, prolonged uncertainties regarding thenomination of a suitable operator led to an impasse. Pakistani officialsreportedly issued final communications seeking clarity, but responsesindicated waning commitment from Abu Dhabi. Despite this, the PrivatisationCommission refuted any notion of outright cancellation, insisting theprocess simply evolved into a broader competitive model.
Islamabad International Airport, a key gateway handling significantpassenger traffic and serving as the capital’s primary aviation hub, hasbeen formally included in the active privatization programme under along-term concession mode. This inclusion aligns with parallel efforts formajor facilities in Karachi and Lahore, reflecting a comprehensive strategyto outsource operations at Pakistan’s three largest airports throughmanagement contracts or concessions. The approach prioritizes inclusivity,allowing participation from all eligible bidders, including entities frompartner nations.
The aviation sector in Pakistan has faced persistent challenges, includingunderinvestment and operational inefficiencies, prompting successiveadministrations to explore privatization avenues. Recent successfultransactions, such as the privatization of Pakistan International Airlines,have bolstered confidence in this model. By opting for competitive bidding,the government seeks to attract advanced expertise, modernizeinfrastructure, and improve service standards while generating revenue toalleviate fiscal pressures.
Media reports suggesting diplomatic friction or a loss of interest by theUAE have circulated widely, with some sources citing unnamed officials whoclaimed Abu Dhabi failed to advance the nomination process despite repeatedengagements. A delegation from Pakistan, including senior privatizationadvisers, had visited Abu Dhabi to negotiate framework details, but thetalks did not culminate in a finalized pact. Nevertheless, officialstatements underscore that bilateral ties remain strong, with the pivot toopen bidding designed to foster fair competition without prejudice to anypartner.
The Privatisation Commission’s intervention aims to correct the publicrecord and prevent misinformation from impacting investor sentiment. Byemphasizing economic and procedural rationale, authorities seek to reassurestakeholders that the process remains transparent and merit-based. Thisdevelopment underscores Pakistan’s commitment to structural reforms incritical infrastructure sectors, particularly aviation, which plays a vitalrole in economic connectivity and trade facilitation.
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Experts view the shift as pragmatic, given the complexities ofgovernment-to-government deals, which can sometimes face bureaucratichurdles. Open tenders are expected to draw diverse proposals, potentiallyyielding better terms, technology transfers, and operational enhancements.The inclusion of Islamabad Airport in the privatization pipeline signalsaccelerated momentum in the government’s broader divestment agenda.
Source:https://privatisation.gov.pk/NewsDetail/NzA3ZGNlYWYtMThmYS00MzM5LWE3ZGMtN2JmN2U5YWQzMWE2
Privatisation Commission
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