On Saturday, the Privatization Commission (PC) declared that no agreement or lease had ever been signed for any of the airports and rejected reports that claimed Pakistan had canceled a proposed lease of the Islamabad International Airport to the United Arab Emirates (UAE).
The proposal to “outsource the management and operations of Islamabad International Airport to the UAE after Abu Dhabi lost interest in the process” was allegedly abandoned by the Pakistani government, according to various media sources.
According to the PC’s statement, the government has been actively considering a variety of options for outsourcing operations at three major airports: Islamabad International Airport, Jinnah International Airport in Karachi, and Allama Iqbal International Airport in Lahore. These options include management contracts and long-term commercial concessions.
“In keeping with the ongoing process for airports at Karachi and Lahore, the Islamabad Airport has been included in the active privatization program as part of this strategy.”
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 required positive communication with organizations from important partner countries, such as Saudi Arabia, Turkey, the United Arab Emirates, and other international players. These initiatives are consistent with Pakistan’s larger economic goal of fostering mutually beneficial cooperation in order to modernize the aviation industry.
The Privatization Commission vehemently disputes some false allegations that indicate “cancelling of any proposed agreement for Islamabad International Airport.”
The PC statement stated, “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 government decided to switch from G2G [government-to-government] mode to an open bidding mode for all three airports in November 2025 due to the high level of interest from various investors for participating in these concessions.”
The PC added that both local and foreign investors will have an equal opportunity to participate in the bidding process.
“This decision is solely based on economic and procedural considerations and has no political or diplomatic background.”
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.”