Abu Dhabi Group's Silence Prompts Pakistan to Reassess Three Major Airport
Key Points
- 1Pakistan's Privatisation Division is re-evaluating the outsourcing of three major airports due to the Abu Dhabi Investment Group's unresponsiveness on the Islamabad deal.
- 2The Cabinet Committee on Privatisation (CCoP) approved placing Karachi and Lahore airports on the active privatisation list on November 28, 2025.
- 3A final communication has been issued to the Abu Dhabi Investment Group; open competitive bidding for all three airports is possible next Friday if no response.
- 4Outsourcing focuses on landside and apron operations to enhance service quality, management, and attract vital private investment.
Pakistan's Privatisation Division is re-evaluating its ambitious plan to outsource operations of three major international airports after the Abu Dhabi Investment Group (ADIG) failed to respond to communications regarding the Islamabad International Airport takeover. This silence has prompted a significant shift in strategy, potentially opening the door for broader competitive bidding for these critical aviation assets. The airports in question are Islamabad International Airport, Jinnah International Airport in Karachi, and Allama Iqbal International Airport in Lahore.
During a Cabinet Committee on Privatisation (CCoP) meeting on November 28, 2025, chaired by Pakistan's Deputy Prime Minister Senator Ishaq Dar, it was revealed that ADIG has remained unresponsive to repeated official inquiries concerning the Islamabad airport transaction. Consequently, the CCoP agreed to place Allama Iqbal International Airport and Jinnah International Airport on the active privatisation list. Authorities were also directed to issue a final communication to ADIG. Should the UAE-based group not respond, the Privatisation Division will be authorized to proceed with open competitive bidding for all three airports as early as next Friday.
The Pakistan Airports Authority (PAA) aims to outsource the landside and apron areas of these airports to enhance service quality, ensure efficient management, and attract private investment and expertise, aligning with international best practices. The landside scope includes terminals, parking, and commercial facilities, while the apron area covers aircraft parking, loading, refueling, and boarding zones. Crucially, the airside, encompassing runways and taxiways, will remain under exclusive state control due to national security and regulatory considerations. This initiative is expected to boost revenue generation and optimize asset utilization, supporting the government's broader policy for improved infrastructure through public-private collaboration.
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