Govt plans fast-track privatisation of Islamabad airport, five DISCOs and two GENCOs

The federal government plans to fast-track the privatisation and outsourcing of Islamabad International Airport, five electricity distribution companies (DISCOs) and two generation companies (GENCOs) during the current year, the Senate Standing Committee on Privatisation was informed on Friday.

Officials told the committee that following the privatisation of Pakistan International Airlines, Islamabad International Airport has been identified as the next priority, with the process to be carried out through open and competitive bidding rather than government-to-government arrangements.

Briefing the panel, Privatisation Commission Secretary Usman Akhtar Bajwa said a summary seeking approval for outsourcing Islamabad airport and appointing a financial adviser would soon be submitted to the Cabinet Committee on Privatisation and the federal cabinet. He said initial discussions had explored government-to-government options with Türkiye, Saudi Arabia and the United Arab Emirates, but no formal arrangements were concluded, leading to a decision to pursue open bidding.

He added that Karachi and Lahore airports would also be outsourced after Islamabad, and that existing airport staff would be redeployed to smaller airports once the process is completed. The Asian Development Bank has expressed interest in acting as financial adviser for airport outsourcing, citing its experience in similar transactions abroad.

The committee was also informed that 24 state-owned entities have been included in the privatisation programme for the year. The process for privatising five DISCOs and two GENCOs has already been initiated, while the prime minister has directed that the capacity of the Privatisation Commission be strengthened through the hiring of experienced consultants to accelerate the programme.

Discussion during the meeting also focused on the stalled privatisation of Pakistan International Airlines. Committee members questioned the eligibility of the Arif Habib-led consortium, including references to pending court cases and regulatory matters. Bajwa said the commission had carried out due diligence through relevant institutions and found no blacklisting or adverse decisions by regulators or courts that would disqualify the bidder.

Responding to concerns over the lack of aviation expertise among bidders, Bajwa said the consortium had engaged a technical partner with aviation experience. The committee chairman clarified that the privatisation framework did not impose the same technical qualification requirements as a tendering process, and that consortium participation had been permitted under rules approved by the government and international partners.

Members also debated whether the government should retain control of major airports or improve existing facilities instead of outsourcing. Officials argued that interest in airport privatisation had increased following the PIA transaction and that outsourcing would allow the Civil Aviation Authority to focus on improving services at smaller airports.

The committee noted that further deliberations would continue as the proposed transactions move towards cabinet approval.