The federal cabinet has approved a plan to transfer Islamabad Airport management to the United Arab Emirates (UAE) under a government-to-government (G2G) arrangement. The decision was made during a meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) on Thursday, chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar.
The committee endorsed finalizing a framework deal with the UAE. A dedicated negotiation team, led by the prime minister’s adviser on privatization, has been tasked with settling the terms of the agreement in consultation with the defence, finance, law, and privatization ministries.
Officials stated that this move is part of the government’s broader economic revival plan to attract foreign partners, improve efficiency, and reduce losses at state-run enterprises. Similar outsourcing initiatives for other major airports are also being considered.
Since its inauguration in 2018, Islamabad International Airport has struggled with operational inefficiencies and financial difficulties. Authorities believe that transferring Islamabad Airport management to the UAE will bring in global expertise, enhance passenger services, and restore investor confidence in Pakistan’s aviation sector.
The meeting was also attended by the petroleum minister, Special Assistant to the Prime Minister Tariq Bajwa, federal secretaries, and other senior officials.
Earlier reports confirmed that the government abandoned an open bidding process in favor of a direct G2G negotiation with the UAE to finalize the outsourcing of airport operations.