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Pakistan accelerates Islamabad Airport outsourcing after PIA privatization

by Haroon Amin
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Following the privatization of Pakistan International Airlines (PIA), the government has accelerated efforts to outsource operations at Islamabad International Airport, signaling a broader push to attract private investment and modernize key infrastructure.

According to officials, tangible progress has been made on the Islamabad airport outsourcing plan, which is being positioned as an important step toward improving efficiency, service quality, and commercial activity at one of the country’s busiest aviation hubs.

The development was discussed during a high-level cabinet committee meeting chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar. During the briefing, the Ministry of Defence shared detailed updates on the outsourcing framework, including steps taken to encourage private sector participation and interest from international investors.

Officials also said that the initiative seeks to escort professional airport management expertise into Pakistan’s aviation sector, following global models where private operators play a central role in improving passenger services, logistics, and airport revenue streams.

Govt Pushes Islamabad Airport Outsourcing to Attract Foreign Investment

Speaking at the meeting, Ishaq Dar underlined the importance of foreign direct investment (FDI) in stabilizing Pakistan’s economy. He noted that Islamabad International Airport outsourcing could assist in reviving

  • Trade activity

  • Improve operational standards

  • Send a positive signal to global investors

“Foreign investment will not only improve infrastructure but also help put the economy back on track,” Dar said, adding that enhanced commercial activity around airports could support job creation and long-term growth.

The key federal officials attended the meeting, including the Minister for Petroleum, the Prime Minister’s Advisor on Privatization, Special Assistant to the Prime Minister Tariq Bajwa, and federal secretaries from the Cabinet, Defence, and Privatization divisions. Senior representatives from relevant ministries also participated in the discussions.

Also Read: UAE to manage Islamabad airport after Pakistan approves transfer

How PIA Privatization Accelerated Islamabad Airport Outsourcing Plans

Officials familiar with the process said the airport outsourcing plan is part of a broader reform agenda. The aim is to reduce the government’s operational burden while improving service delivery through private-sector expertise. The Government is also applying great lessons from the PIA privatization process to ensure greater transparency and investor confidence.

Islamabad International Airport, which handles millions of passengers annually, has significant commercial potential through

  • Retail

  • Cargo handling

  • Auxiliary services

By outsourcing its operations, the government is hoping for unlocking this potential and align the airport with international standards.

Authorities emphasized that national security considerations will remain safeguarded, as the outsourcing model is expected to focus primarily on operations and management rather than ownership.

What the Outsourcing Means for Pakistan’s Economy

If Islamabad International Airport Outsourcing is successfully implemented, the project is capable of paving the path for similar public-private partnerships at other major airports across Pakistan, marking a major shift in how the country manages strategic infrastructure.

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