Pakistan Approves UAE to Manage Islamabad International Airport

Pakistan has approved a plan for the United Arab Emirates (UAE) to take operational control of Islamabad International Airport. The move is part of Pakistan’s strategy to manage major state assets through government-to-government partnerships.

The decision was made during a Cabinet Committee meeting on Inter-Governmental Commercial Transactions, chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar. A special negotiation team, led by the Prime Minister’s Adviser on Privatisation Muhammad Ali and supported by officials from the Defence, Finance, Law, and Privatisation ministries, will finalise the terms of the agreement with Abu Dhabi.

Officials described the deal as a “strategic pivot” in Pakistan’s wider privatisation and economic reform programme, aimed at attracting foreign investment, modernising infrastructure, and reducing losses from underperforming state-owned enterprises.

Business and Investment Impact

Opened in 2018 at a cost of over USD 1 billion, Islamabad International Airport is Pakistan’s largest aviation facility. It can currently handle 15 million passengers a year, with plans to expand to 25 million. Despite its modern design, the airport has faced operational challenges and financial losses, making it a priority for outsourcing management.