The government of Pakistan has approved a landmark decision to hand over the operations of Islamabad International Airport to the United Arab Emirates (UAE) under a government-to-government (G2G) deal. The move is seen as part of a broader strategy to modernize state-owned enterprises and attract foreign expertise.
A Landmark G2G Agreement
The decision came during a meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT), chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar. The committee authorized the finalization of a framework agreement with the UAE. A special negotiation team, led by the Prime Minister’s adviser on privatization, will settle terms in consultation with the defence, finance, law, and privatization ministries.
Officials believe this partnership will help revive Pakistan’s aviation sector. Islamabad International Airport, inaugurated in 2018, has faced consistent challenges with operational inefficiencies and financial losses. By transferring management to the UAE under a G2G model. Authorities hope to improve passenger services, restore investor confidence, and bring international standards to airport operations.
The plan is part of Islamabad’s wider economic revival program. Which includes inviting foreign partners to manage and upgrade state assets. Similar outsourcing arrangements for other major airports in the country are also under review.
The meeting was attended by key ministers and senior officials. Including the petroleum minister and Special Assistant to the Prime Minister Tariq Bajwa, alongside federal secretaries.
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Reports earlier this year indicated that the government initially considered outsourcing airport operations through open bidding. However, the strategy was revised to adopt the G2G model, allowing direct negotiations with the UAE instead.
With this landmark step, Pakistan aims to reshape its aviation landscape by combining global expertise with local oversight. The final framework agreement with the UAE will determine how operations are managed and what future investments might follow.
