Privatisation Commission rejects reports of Islamabad airport lease cancellation

The Privatisation Commission (PC) dismissed on Saturday reports claiming that Pakistan had cancelled a proposed lease of the Islamabad International Airport to the United Arab Emirates (UAE), terming them misleading and factually incorrect, and clarified that no agreement or lease had ever been signed for any of the airports.

The development came after some media reports claimed that Pakistan government had shelved a plan to “outsource the management and operations of Islamabad International Airport to the UAE after Abu Dhabi lost interest in the process”.

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In its statement, the PC said the government had been actively considering a range of options for outsourcing operations at three major airports - Islamabad International Airport, Karachi’s Jinnah International Airport, and Lahore’s Allama Iqbal International Airport - through appropriate modes, including management contracts and long-term commercial concessions.

“As part of this strategy, the Islamabad Airport has been included into the active privatisation programme, consistent with the ongoing process for airports at Karachi and Lahore.”

It further said the primary objectives of the government were to enhance efficiency, improve service delivery, maximise revenue generation, upgrade infrastructure, and attract domestic and international private sector investments.

“This has involved constructive dialogue with entities from valued partner nations, including the United Arab Emirates, Turkey, Saudi Arabia, as well as other international stakeholders. These efforts are in line with Pakistan’s overarching economic vision to cultivate mutually beneficial collaboration to modernise the aviation sector.

“The Privatisation Commission has noticed some misleading reports that suggest ‘cancelling of any proposed agreement for Islamabad International Airport’ and strongly refutes such reports.

“In this context, the claim that Pakistan has cancelled any lease agreement with the UAE is contrary to the facts and misleading, as no such agreement or lease was ever signed for any of the airports including Islamabad International Airport,” the PC statement read.

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“In November, 2025, due to high level of interest from various investors for participating in these concessions, the government decided to move from G2G [government-to-government] mode to an open bidding mode for all three airports.”

In that process, the PC further said, all domestic and foreign investors would have a level playing field to participate in the bidding process.

“This decision does not have any political or diplomatic background, and is based purely on economic and procedural reasons.”

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The envisaged competitive process for airport outsourcing would prioritise inclusivity, welcoming participation from all eligible entities, including those from the valued partner nations and beyond, while affording equal opportunities to local and foreign investors, the commission maintained.

“This is designed to promote transparency and fair competition, deliver the most advantageous results for Pakistan’s economy, and reinforce our enduring relationships with international partners.”