By Staff Reporter
ISLAMABAD: Pakistan is shifting the outsourcing of its three biggest airports to an open bidding process after drawing strong interest from investors, a move that scraps earlier plans for government-to-government deals and aims to spur competition.
The Privatisation Commission said the operations at Islamabad International Airport, Karachi’s Jinnah International Airport and Lahore’s Allama Iqbal International Airport will now be handled through a transparent auction open to all qualified domestic and foreign players.
The decision follows months of talks with potential partners from the United Arab Emirates, Turkey, Saudi Arabia and elsewhere that failed to yield agreements, effectively ending stalled negotiations with the UAE, according to local media. “This approach is designed to promote transparency and fair competition, deliver the most advantageous results for Pakistan’s economy and reinforce relationships with international partners,” the commission said in a statement.
The government has been weighing options including management contracts and long-term commercial concessions to revamp the airports, which are key gateways for trade and travel in the South Asian nation. Islamabad’s airport has now been added to the active privatization list, aligning it with the ongoing processes for the facilities in Karachi and Lahore. The primary goals are to boost efficiency, elevate service standards, maximize revenue streams, modernize infrastructure and draw in private-sector capital, the commission added, noting that these steps fit into Pakistan’s broader push to upgrade its aviation industry through global collaboration. Officials said the pivot to open bidding stems purely from economic and procedural factors, not geopolitical pressures.
The Ministry of Privatisation, in a separate statement, pushed back against reports of a canceled deal with the UAE for the Islamabad airport, saying “no such agreement or lease was ever signed for any of the airports, including Islamabad International Airport.” The competitive process will emphasise inclusivity, inviting bids from all eligible entities, including those from allied countries, while ensuring a level playing field for local and international investors.
Pakistan has held constructive discussions with stakeholders from the UAE, Turkey, Saudi Arabia and other nations as part of its efforts to inject fresh investment into the sector. The outsourcing initiative is expected to enhance operational performance at the airports, which handle millions of passengers annually and serve as vital hubs for cargo and connectivity in the region.
In a related development, the Privatisation Commission is seeking proposals for a financial adviser to oversee the redevelopment of the government-owned Roosevelt Hotel in New York through a joint venture. Proposals are due by Feb. 16, with the transaction targeted for completion within a year, according to details posted on the commission’s website. The adviser will evaluate market interest, pinpoint potential investors and gauge appetite for various deal structures outlined in prior reports. The role also includes crafting a marketing plan to showcase the property, arranging investor meetings to gauge sentiment and refining the privatization approach to suit the best joint-venture model for mixed-use development.
The 19-story Roosevelt Hotel, situated on Madison Avenue in midtown Manhattan, stands as the sole real estate asset in Pakistan’s privatization pipeline. The property boasts 1,025 rooms across more than 600,000 square feet and is fully owned by PIA Investments Ltd., a unit controlled by the Pakistani government. The hotel, long regarded as one of Manhattan’s premier addresses, has been eyed for upgrades to capitalise on its prime location amid New York’s bustling commercial district.
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