Pakistan’s federal cabinet has greenlit a plan to hand over the management of Islamabad International Airport to the United Arab Emirates (UAE) through a government-to-government (G2G) deal. The decision was made at a Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) meeting on Thursday, led by Deputy Prime Minister and Foreign Minister Ishaq Dar.
The committee has approved the finalization of a framework agreement with the UAE. A negotiation team, headed by the prime minister’s adviser on privatization, will now work on the terms of the deal in collaboration with the ministries of defence, finance, law, and privatization.
This move is part of the government’s economic strategy to attract foreign investment, boost efficiency, and cut losses at state-owned entities. Officials confirmed that other major airports may also be considered for similar outsourcing projects.
Since its opening in 2018, Islamabad International Airport has faced significant operational and financial challenges. The government believes that the new management from the UAE will introduce global expertise, improve services for passengers, and rebuild investor confidence in Pakistan’s aviation industry.
Earlier, the government opted for direct G2G negotiations with the UAE instead of a public bidding process to finalize the airport’s outsourcing. The meeting was also attended by the petroleum minister, Special Assistant to the Prime Minister Tariq Bajwa, and other senior officials.