Pakistan Advances Lahore, Karachi Airports Outsourcing Plan
Pakistan’s privatisation programme moved into a fresh phase on Wednesday as the Privatisation Commission Board approved key steps for outsourcing the operations of Lahore’s Allama Iqbal International Airport and Karachi’s Jinnah International Airport. The decision was taken in Islamabad during the commission’s 257th board meeting, chaired by Adviser to the Prime Minister on Privatisation Muhammad Ali.
The development marks a significant expansion of the government’s plan to bring private-sector expertise into major public assets. Alongside the two airports, the board also advanced the proposed privatisation process for Lahore Electric Supply Company and Multan Electric Power Company, two major electricity distribution companies serving large parts of Punjab.
According to the details shared after the meeting, the board approved a consortium led by EY-Parthenon as the top-ranked interested party for appointment as financial adviser for the Lahore and Karachi airport outsourcing transactions. A negotiation committee has also been formed to finalise the Financial Advisory Services Agreement with the selected consortium.
Officials said the decisions were part of a broader effort to ensure that privatisation-related transactions are handled through competitive, transparent and professionally managed processes. The board also declared the planned privatisation of LESCO and MEPCO as major transactions, clearing the way for the appointment of financial advisers under the relevant regulatory framework.
The move is important because Lahore and Karachi are among Pakistan’s busiest aviation gateways, handling domestic passengers, international travellers, cargo movement and airline operations. Any improvement in management, passenger facilities and commercial efficiency at these airports could directly affect travel experience, airline competitiveness and airport revenues.
Pakistan has been trying to reduce the financial pressure of state-owned enterprises and unlock private investment in sectors where public-sector performance has often remained below potential. Airport outsourcing has been presented by policymakers as a way to improve services without immediately selling the assets, while still allowing professional operators to modernise systems and expand commercial activity.
The decision also comes after Pakistan’s wider privatisation drive gained momentum through the sale of Pakistan International Airlines. Under that transaction, an Arif Habib-led consortium secured a majority stake in the airline, with the government arguing that private management and fresh investment were necessary to revive loss-making public entities.
The inclusion of LESCO and MEPCO in the latest decisions shows that the government is not limiting reforms to aviation. Power distribution companies remain central to Pakistan’s energy-sector challenges because line losses, billing issues and governance weaknesses have historically added pressure on public finances and electricity consumers.
For Pakistan’s economy, the outcome of these transactions could influence investor confidence, fiscal management and public-service delivery. A successful outsourcing model may encourage further private participation in infrastructure, while delays or weak execution could reinforce concerns about regulatory uncertainty and political resistance.
The next stage will involve negotiations with the selected adviser for the airport transactions and the launch of adviser appointments for the two power distribution companies. The real test will be whether the government can move from board approvals to practical implementation while protecting public interest, ensuring transparency and delivering visible improvements for citizens.