Pakistan’s Privatisation Commission board has constituted a dedicated Negotiation Committee to formally engage with the Asian Development Bank on the terms and conditions of a potential Financial Advisory Services Agreement linked to the proposed divestment of Islamabad International Airport. The development marks a significant procedural step in the government’s ongoing efforts to restructure and commercialize key state-owned assets through competitive market mechanisms.
According to a news report, the newly formed committee has been tasked with conducting detailed discussions with the Asian Development Bank regarding advisory support for the transaction. The committee will negotiate the framework, scope, and financial structure of the advisory mandate and subsequently submit its recommendations to the Privatisation Commission board for final approval. This layered decision-making process underscores the commission’s intent to ensure institutional oversight before formalizing any agreement.
The proposed transaction centers on outsourcing the operations of Islamabad International Airport under a concession model. Rather than transferring ownership outright, the concession approach would allow a private operator to manage, operate, and potentially invest in the airport for a specified period, while the state retains ownership of the asset. Such models are commonly adopted in global aviation markets to improve operational efficiency, enhance service standards, and attract private capital without relinquishing sovereign control over strategic infrastructure.
Officials familiar with the matter indicated that the divestment process will follow an open and competitive framework. This means that once advisory arrangements are finalized and transaction structuring is completed, interested investors will be invited to participate through a transparent bidding process. By committing to a competitive structure, the commission aims to strengthen investor confidence and secure optimal value for the asset.
Engagement with the Asian Development Bank is viewed as a strategic move to leverage international financial and technical expertise. Multilateral development institutions often provide advisory services in large-scale infrastructure transactions, including transaction structuring, financial modeling, regulatory assessment, and investor outreach. The Financial Advisory Services Agreement under discussion is expected to outline the bank’s role in guiding the concession design and ensuring alignment with global best practices.
Islamabad International Airport represents one of Pakistan’s most prominent aviation assets, serving as a major gateway for international and domestic traffic. Any restructuring of its operational framework is likely to have broad implications for airline connectivity, passenger experience, and the broader aviation ecosystem. The concession model, if executed effectively, could facilitate operational upgrades, digital modernization, and infrastructure optimization while reducing fiscal pressure on the public sector.
In a separate but related development, the Privatisation Commission board also approved the commission’s audited financial statements for the fiscal year 2024-25. The approval of audited accounts signals continued adherence to statutory financial reporting standards and institutional governance requirements. By formally endorsing the audited statements, the board reiterated its commitment to transparency and accountability in the management of privatisation initiatives.
The dual actions — formation of the Negotiation Committee and approval of audited financial results — collectively reinforce the commission’s stated objective of advancing privatisation through structured, transparent, and competitive processes. As Pakistan navigates fiscal consolidation pressures and seeks to attract foreign investment, the proposed concession of Islamabad International Airport is expected to serve as a test case for future infrastructure transactions structured under similar models.
Further developments will depend on the outcome of negotiations with the Asian Development Bank and the subsequent approval of terms by the Privatisation Commission board.
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