ADB to advise on airport outsourcing
The ADB listed Pakistan among 60 nations that may face 10% to 12.5% additional US tariffs from July 24. It said recent policy developments indicate US trade restrictions are likely to remain broad despite the Supreme Court’s invalidation. photo:REUTERS
The Privatisation Commission Board has appointed the Asian Development Bank (ADB) as financial adviser for outsourcing the operations of Islamabad International Airport, according to a statement.
The Board, in its 255th meeting held on Friday and chaired by Prime Minister's Adviser on Privatisation Muhammad Ali, approved signing a Transaction Advisory Services Agreement with the ADB. The Board expressed confidence that the ADB would complete the process in a timely manner while ensuring competitiveness and transparency.
The airport will be outsourced to a qualified private operator under a long-term concession framework through a transparent and competitive process. The initiative is expected to improve operational performance, enhance passenger experience and align facilities with international standards.
The decision comes after the government shelved a plan to outsource the airport to the UAE earlier this year, following repeated delays by Abu Dhabi in nominating an entity, which led to its loss of interest.
In January, Secretary of the Ministry of Privatisation told the Senate Standing Committee that Saudi Arabia, the UAE and Türkiye have now expressed interest in the airport, and instead of a government-to-government arrangement, open bidding will be conducted.
The secretary said whichever country or company offers the highest price will be awarded the airport's management. He added that after Islamabad, Karachi and Lahore airports will also be outsourced. ADB had first expressed interest in assisting Pakistan with airport outsourcing in January this year.
Following the recent privatisation of Pakistan International Airlines (PIA), the government declared Islamabad Airport a priority for privatisation.
Earlier this year, Privatisation Commission Secretary Usman Bajwa said that 24 state-owned entities are being privatised this year, and the three major airports have also been included in the privatisation list. He said the privatisation process of five DISCOs and two GENCOs has been initiated. The prime minister has directed that the capacity of the Privatisation Commission be enhanced and that the best consultants from the market be hired, with instructions to expedite the privatisation programme.
The Privatisation Commission Board also approved the appointment of BDO Ibrahim & Company Chartered Accountants as external auditors for a three-year term, covering 2025-26 to 2027-28.
The Board reaffirmed its commitment to maintaining high standards of transparency and performance to sustain growing investor confidence in the government's privatisation programme.