ISLAMABAD: The federal government has said that after the privatisation of Pakistan International Airlines (PIA), the privatisation of Islamabad International Airport has been made a top priority. The process will be carried out through open bidding and not through government-to-government (G2G) deals.
Officials shared these details during a meeting of the Senate Standing Committee on Privatisation, chaired by Senator Afnanullah Khan.
The Secretary of the Ministry of Privatisation told the committee that Islamabad Airport is the next major project after PIA. He said that Saudi Arabia, the United Arab Emirates and Türkiye have shown interest in managing the airport.
He said the airport will be awarded to the country or company offering the highest bid. After Islamabad Airport, Karachi and Lahore airports will also be outsourced.
A financial adviser is being appointed for the Islamabad Airport project. He added that the Asian Development Bank (ADB) has shown interest in supporting Pakistan in airport outsourcing.
The secretary said that after outsourcing the three major airports, existing staff will be shifted to smaller airports to improve their operations.
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Privatisation Commission Secretary Usman Bajwa told the committee that 24 state-owned entities are planned to be privatised this year. He said the three major airports are included in this list. He added that the privatisation process of five DISCOs and two GENCOs has also begun.
Bajwa said the prime minister has directed that the Privatisation Commission’s capacity be increased and that top consultants from the market be hired. Currently, the commission has six consultants. The prime minister has also ordered that the privatisation programme be sped up.
During a briefing on PIA, the committee was informed that the privatisation process could not be completed in 2024. Senator Palwasha Khan asked whether a petition against the Arif Habib Group pending in the Supreme Court had been decided.
The privatisation secretary replied that due diligence had been carried out and no court decision or blacklisting had been reported.
Senator Palwasha Khan also asked about a Competition Commission decision related to Aisha Steel. Usman Bajwa said the commission had not received any such decision from any institution.
Senator Bilal Ahmed raised concerns over allowing bidders without aviation experience to take part in the process.
Committee Chairman Senator Afnanullah Khan said no such condition was set, as this was a privatisation process and not a tender. He said the procedure had been approved by the government and international institutions, and consortium participation was allowed.
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Officials said that either Islamabad Airport should be privatised or its facilities improved. The privatisation secretary said interest in airport privatisation has increased after PIA’s privatisation. He said it currently takes up to an hour to enter Islamabad International Airport, which is why privatisation is needed.
Senator Palwasha Khan questioned whether the government was no longer able to manage its own institutions. In response, the chairman said conditions at some airports were poor and repeated that the government would go ahead with privatisation.
The privatisation secretary again said that companies from Saudi Arabia, Türkiye and the UAE are interested in operating the airports, and that ADB is ready to assist. He added that outsourcing major airports would help the Civil Aviation Authority improve services at smaller airports.
Senator Bilal Ahmed suggested that the government should consider outsourcing all airports at once and seek a detailed opinion from the Civil Aviation Authority.
