Key Points
- Cabinet committee approves agreement under government-to-government (G2G) framework
- Advisor on privatisation to lead negotiations, with input from key ministries
- Initiative aims to attract foreign partners to modernise and enhance Pakistan’s infrastructure
ISLAMABAD: The government of Pakistan has decided to hand over the operational control of Islamabad International Airport to the United Arab Emirates (UAE), marking a significant step in its broader strategy to engage foreign partners in the management of key state-owned assets.
The decision was taken during a meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT), chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar.
The agreement will be executed under a government-to-government (G2G) framework.
A negotiation committee, headed by the Prime Minister’s Advisor on Privatisation, has been tasked with finalising the terms of the deal, with input from the ministries of defence, finance, law, and privatisation.
This move reflects Pakistan’s ongoing efforts to attract foreign investment aimed at upgrading infrastructure and enhancing efficiency in underperforming state enterprises.
Entities already on the government’s privatisation list include the national flag carrier, Pakistan International Airlines (PIA), as well as state-run electricity generation and distribution companies. Meanwhile, authorities have been actively seeking international partners to modernise airports and enhance service quality.
Officials are hopeful that foreign collaboration will bring in operational expertise, improve the passenger experience, and help restore confidence in the country’s aviation sector.
“Today [Aug. 28] we decided to finalise arrangements with the UAE government through a G2G framework agreement for the transfer of operations of Islamabad International Airport,” Deputy Prime Minister and Foreign Minister Ishaq Dar said in a statement after chairing a meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions.
Islamabad International Airport, inaugurated in 2018 at a cost of over $1 billion, has faced criticism over construction delays, poor facilities, and operational inefficiencies. The airport was constructed to replace the old Benazir Bhutto International Airport, which had been overwhelmed by passenger traffic.
