Pakistan's Privatisation Commission Clarifies: Islamabad Airport Lease Was Never Signed.

Ujjwal Sukhwani
By Ujjwal SukhwaniPublished Jan 25, 2026 at 01:37 AM UTC, 2 min read

Aviation News Editor & Industry Analyst delivering clear coverage for a worldwide audience.

Pakistan's Privatisation Commission Clarifies: Islamabad Airport Lease Was Never Signed.

Pakistan's Privatisation Commission dismissed reports of cancelling the Islamabad International Airport lease, clarifying that no agreement was ever signed, and the process is moving to open bidding.

Key Takeaways

  • Pakistan's Privatisation Commission (PC) strongly denied reports of canceling a proposed lease for Islamabad International Airport, clarifying no agreement was ever signed.
  • The government confirmed the shift in November 2025 from a Government-to-Government (G2G) model to an open bidding process for all three major airports: Islamabad, Karachi, and Lahore.
  • The core objectives of the privatization plan are to enhance efficiency, upgrade infrastructure, and attract domestic and international private sector investment through long-term commercial concessions.
  • The new competitive process is designed for transparency, ensuring a level playing field for all eligible entities, including those from the UAE, Turkey, and Saudi Arabia.

The Privatisation Commission (PC) of Pakistan on Saturday strongly refuted claims. These reports suggested the cancellation of a proposed lease. The lease was for Islamabad International Airport with the United Arab Emirates (UAE). The PC termed the media reports misleading and factually incorrect. It clarified that no lease or agreement was ever signed for any of the country's airports.

Shift to Open Bidding

The government is actively pursuing options for outsourcing operations. This includes three major aviation hubs. These are Islamabad International Airport, Karachi's Jinnah International Airport, and Lahore's Allama Iqbal International Airport. The options include management contracts and long-term commercial concessions.

Previously, the government explored a government-to-government (G2G) mode. This was for the outsourcing of the Islamabad facility. However, the PC announced a significant procedural change. In November 2025, the government shifted its strategy. This was due to high interest from various investors. The process moved from G2G to an open bidding mode for airports.

This decision is purely economic and procedural. It has no political or diplomatic background. This competitive process ensures a level playing field. All domestic and foreign investors can participate equally.

Modernizing Pakistan's Aviation Sector

This strategy is part of a broader economic vision. The goal is to modernize Pakistan's aviation sector. The primary objectives of the government are clear:

  • Enhance operational efficiency and service delivery.
  • Maximize revenue generation for the state.
  • Upgrade critical airport infrastructure.
  • Attract international private sector investments.

International Interest and Collaboration

Constructive dialogue is ongoing with valued partner nations. These include the United Arab Emirates, Turkey, and Saudi Arabia. Other international stakeholders are also involved. The PC emphasized that the competitive process will prioritize inclusivity. It welcomes participation from all eligible entities. The move is designed to promote transparency and fair competition. This is expected to deliver the most advantageous results for Pakistan’s economy. The PC statement reinforces enduring relationships with international partners. The inclusion of Islamabad International Airport in the active Pakistan airport privatization plan aligns with the ongoing process for Karachi and Lahore.

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Ujjwal Sukhwani

Written by Ujjwal Sukhwani

Aviation News Editor & Industry Analyst delivering clear coverage for a worldwide audience. Covers flight operations, safety regulations, and market trends with expert analysis.

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