Three Pakistan airports to be concessioned; likely interest from within country and from Middle East

After years of wrangling over the best way to sell off some off Pakistan's leading airports, and following the 2025 privatisation of the flag carrier Pakistan International Airlines (PIA), a decision has now been taken to offer the three busiest airports as long term lease concessions under a form of public-private partnership yet to be decided.

The government has been driven to do this by a dire macroeconomic situation.

Only one airport in the country (Sialkot) is 'privatised', and in reality that is merely a corporatisation, as it is financed by the local Chamber of Commerce.

Hopes are high after the PIA deal, a challenging process of a burdened until recently by being unable to fly in Europe over safety concerns.

Investors may be equally concerned about the airports, which handle far fewer passengers than their peers in India.

But, Islamabad is a mature airport with a strong route network in some areas - especially where there are substantial expatriate populations - no dominant airline, and a good mix of full service and low cost airlines, including alliance members. It has good scope for improvement, and the Karachi and Lahore airports are similar in nature.

Elsewhere, significant funds are being directed toward regional and international connectivity. This includes major greenfield airport projects and feasibility studies for new airports throughout the country.

So there is the promise of more, later and there is certainly enough there to prompt an initial attraction from domestic Pakistani organisations, also from the Middle East, where interest has been shown before now.

But the government is venturing into virgin territory, where hard-nosed international investors are concerned, and one or the other might yet be disappointed in the final outcome.