Pakistan moves to hand over Islamabad Airport operations to UAE in G2G deal

By Israr Khan
|
August 29, 2025
A general view of the Islamabad International Airport ahead of its official opening. —AFP/File

ISLAMABAD: Pakistan has cleared the way for the United Arab Emirates (UAE) to take over operations at the Islamabad International Airport, marking the first step in outsourcing the management of the country’s largest airports under government-to-government (G2G) agreements.

Deputy Prime Minister/Foreign Minister Ishaq Dar on Thursday chaired a meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT), which decided to finalise arrangements with the UAE government through a G2G model for the transfer of operations of Islamabad International Airport under a framework deal. A negotiation committee, led by the prime minister’s adviser on privatisation, will finalise terms with input from the defence, finance, law and privatisation ministries.

The move underscores Pakistan’s efforts to attract foreign partners to upgrade infrastructure and improve efficiency at loss-making state assets. The government has already indicated plans to outsource operations of major airports to international operators as part of broader privatisation and investment reforms tied to its economic revival strategy.

Islamabad International Airport, inaugurated in 2018, has faced operational and financial challenges. Officials say outsourcing management through a G2G arrangement with the UAE will ensure higher service standards, operational expertise and greater investor confidence. The meeting was attended by the petroleum minister, prime minister’s adviser on privatisation, Special Assistant to the Prime Minister Tariq Bajwa, federal secretaries and senior officials from relevant ministries.