The Board of Privatisation Commission, in its recent meeting chaired by Muhammad Ali, the Adviser to the Prime Minister on Privatisation, has recommended the inclusion of the management of the Islamabad, Lahore, and Karachi international airports in the government’s privatization program.
The commission also approved the official inclusion of AKD Group Holdings (Pvt) Ltd in the Arif Habib Corporation Ltd (AHCL)-led consortium for the Pakistan International Airlines Corporation Ltd (PIACL) divestment.
The AHCL consortium is one of four pre-qualified bidders for the ongoing PIACL privatization.
This inclusion was approved following a request from the consortium and confirms compliance with the conditions outlined in the Statement of Qualifications (SOQ).
The plan is to offer the operations of these airports under a long-term concession model to attract private sector expertise and improve efficiency.
The management and operations of the airports will be offered under a long-term concession model.
The primary objective is to attract private sector expertise and foreign investment to improve operational efficiency and service quality and generate revenue for the national exchequer.
This is a recommendation, which means the move requires further approvals before the actual bidding process can be initiated.
There has been a history of interest from various international entities, including those from Qatar, the UAE, and a Turkish consortium (TERG), for the management of these airports.
Previously, a Request for Proposals (RFP) for a 15-year concession for the Islamabad airport had been issued, with a Turkish-led consortium submitting a bid below the government’s set minimum fee.
The new collective approach for all three airports may alter the previous process.
This move is part of the government’s broader strategy to reform state-owned enterprises and is considered a key step in line with commitments made under the International Monetary Fund (IMF) program.
