The Privatisation Commission has formed a negotiation committee to work with ADB on hiring a financial adviser for outsourcing operations of Islamabad International Airport.
Negotiation Committee Formed Under Privatisation Commission
The Privatisation Commission Board has approved the formation of a negotiation committee to oversee the hiring of a financial adviser for the planned privatisation of Islamabad International Airport. The decision was taken at the Board’s 248th meeting, chaired by Muhammad Ali, Adviser to the Prime Minister on Privatisation and Chairman of the Privatisation Commission.
According to the official statement, the newly formed committee will engage directly with the Asian Development Bank (ADB) to discuss and finalise the terms for a potential Financial Advisory Services Agreement (FASA). The initiative is part of the government’s broader strategy to bring in international expertise for complex infrastructure and privatisation transactions.
Once negotiations with ADB are complete, the committee will present its recommendations to the Privatisation Commission Board for formal approval. This process is being undertaken under the Privatisation Commission (Hiring of Financial Adviser) Regulations, 2018, which set out rules for selecting advisers in a structured and transparent manner.
ADB’s Role in Financial Advisory and Transaction Design
The Asian Development Bank is being considered as the lead financial adviser for the Islamabad International Airport transaction. In this role, ADB would be expected to provide technical, financial and legal guidance on how to structure the deal, prepare bidding documents and attract qualified international operators.
Engaging a multilateral institution such as ADB is intended to strengthen investor confidence, as it brings global experience in airport concessions and public–private partnership deals. An experienced adviser can help the government benchmark the transaction against regional and international standards, ensuring that the concession terms are competitive and balanced.
ADB’s advisory input will also be important in assessing market appetite, valuing the concession, and identifying key risks for both the government and potential bidders. This groundwork is seen as critical for securing strong participation in the tender process and maximising value for the state.
Concession Model for Islamabad International Airport Operations
Rather than an outright sale of assets, the proposed transaction for Islamabad International Airport is based on a concession model. Under this approach, airport operations would be outsourced to a private operator for a fixed period, while ownership of the underlying infrastructure would remain with the government.
The concessionaire would be responsible for day-to-day operations, maintenance, service-quality improvements and certain capital investments, in line with the terms of the concession agreement. In return, the operator would receive revenue from airport-related activities, subject to agreed fees and sharing arrangements with the government.
Officials say the primary goals of the transaction are to improve operational efficiency, enhance passenger experience and unlock higher commercial potential at the airport, while reducing the direct financial and operational burden on the public sector.
Open, Competitive Bidding and Transparency Commitments
The Privatisation Commission has stressed that any concession for Islamabad International Airport will be awarded through an open and competitive bidding process. This means that qualified operators will be invited to participate under uniform rules, with bids evaluated on clear financial and technical criteria.
In its latest meeting, the Board also approved the audited financial statements of the Privatisation Commission for the fiscal year 2024–25, in line with statutory requirements. The approval is being positioned as part of the Commission’s commitment to sound governance and financial discipline.
Officials reiterated that all privatisation and public–private partnership transactions are being conducted transparently and competitively, with the twin objectives of protecting public interest and maximising returns for the national exchequer.
Next Steps and What the Privatisation Move Could Mean
The immediate next step is for the negotiation committee to conclude talks with ADB and submit its recommendations on the Financial Advisory Services Agreement. Once a financial adviser is formally onboard, detailed work on structuring the airport concession and preparing bid documents is expected to accelerate.
For the aviation sector, successful outsourcing of Islamabad International Airport could set a precedent for similar partnerships at other major airports in Pakistan. Improved service standards, better commercial management and upgraded facilities are among the outcomes the government hopes to achieve through this model.
However, the final impact will depend on how the concession is designed, the level of investor interest and how effectively regulators oversee service quality and consumer protection once a private operator takes charge. The Privatisation Commission maintains that its focus remains on striking a balance between attracting investment and safeguarding long-term public interest.
