The Privatisation Commission Board of Pakistan has taken a significant step toward the privatisation of Islamabad International Airport (IIA) by constituting a dedicated negotiation committee to engage with the Asian Development Bank (ADB) on finalizing the terms of a potential Financial Advisory Services Agreement (FASA). This committee is tasked with negotiating key provisions and presenting its recommendations to the Board, reflecting the government’s strategic move to outsource airport operations under a concession model designed to enhance efficiency, service standards, and financial returns. The announcement of this development was shared by Khurram Schehzad on his X account, highlighting the ongoing transparency in communication regarding major economic projects.
The decision to establish the committee was formalized during the Board’s 248th meeting, chaired by Muhammad Ali, Adviser to the Prime Minister on Privatisation and Chairman of the Commission. This initiative aligns with the earlier approval by the Board to initiate direct negotiations with ADB, in accordance with the Privatisation Commission (Hiring of Financial Adviser) Regulations, 2018, demonstrating adherence to established regulatory frameworks. The engagement with ADB is expected to provide critical financial and strategic advisory support, ensuring that the planned privatisation process meets both operational and fiscal objectives.
The proposed concession model for IIA aims to transfer operational responsibilities to private sector entities while retaining regulatory oversight and ensuring compliance with national standards. By introducing a competitive bidding process, the government seeks to maximize value for the national exchequer and foster improved service quality for airport users. This approach is consistent with broader efforts to modernize Pakistan’s infrastructure assets while leveraging private sector expertise for sustainable management and operational efficiency.
In addition to its focus on the Islamabad airport project, the Privatisation Commission Board reviewed and approved the audited financial statements for the fiscal year 2024–25, ensuring compliance with statutory requirements and reinforcing accountability. The Board also reaffirmed its commitment to conducting all privatisation transactions in a transparent, competitive, and rules-based manner, safeguarding public interest while optimizing returns. This dual focus on governance and strategic economic initiatives underscores the Commission’s broader role in driving reforms in Pakistan’s public sector enterprises.
The involvement of ADB as a financial advisor is expected to provide international best practices and technical guidance throughout the privatisation process. As the government prepares to finalize the Financial Advisory Services Agreement, stakeholders anticipate that this collaboration will enhance the credibility of the transaction and attract qualified investors capable of delivering operational excellence at IIA. Observers note that the successful implementation of this project could serve as a benchmark for future public-private partnership initiatives in Pakistan’s aviation and infrastructure sectors.
The ongoing privatisation initiative reflects a strategic effort to integrate financial prudence with operational modernization. With the negotiation committee actively engaging with ADB and the Commission emphasizing regulatory compliance, Pakistan is positioning Islamabad International Airport as a model for efficient, investor-driven infrastructure management. The project exemplifies the country’s broader economic vision of leveraging public assets through competitive processes to stimulate growth, enhance service delivery, and ensure long-term fiscal sustainability.
This initiative is expected to significantly impact Pakistan’s aviation sector, potentially boosting investor confidence, enhancing passenger experience, and supporting broader economic development objectives in line with international standards and best practices.
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