Islamabad: Pakistan’s cabinet has approved an agreement to transfer the operations of Islamabad International Airport to the United Arab Emirates (UAE) under a government-to-government (G2G) model, in a move aimed at attracting foreign investment and revitalising the country’s struggling aviation sector.
Deputy Prime Minister and Foreign Minister Ishaq Dar announced the decision following a meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions. “Today we decided to finalise arrangements with the UAE government through a G2G framework agreement for the transfer of operations of Islamabad International Airport,” he said.
A Negotiation Committee, led by the prime minister’s adviser on privatisation and comprising representatives from the ministries of defence, finance, law and justice, and privatisation, will work out the details of the handover.
The agreement is part of Pakistan’s broader effort to privatise or outsource management of state-owned enterprises, in line with commitments made to the International Monetary Fund (IMF) under a USD 7 billion bailout approved in September 2024. Pakistan International Airlines (PIA), along with electricity generation and distribution companies, is also on the privatisation agenda.
Officials believe foreign partners can bring in operational expertise, improve passenger services, and restore confidence in the aviation sector, which has faced persistent challenges in recent years.
Islamabad International Airport, inaugurated in 2018 at a cost of more than USD 1 billion, was built to replace the older Benazir Bhutto International Airport but has since faced criticism over construction delays, inadequate facilities, and operational inefficiencies.
The government has also indicated that management contracts for airports in Karachi and Lahore are under consideration, though no final agreements have been reached.
Officials say the partnership with the UAE is expected to enhance efficiency, create employment opportunities, and position Islamabad airport as a more competitive hub for regional and international travel.
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