Islamabad International Airport Operations to Be Transferred to UAE Under G2G Agreement

The Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) has approved a plan to transfer the management of Islamabad International Airport to the United Arab Emirates (UAE) under a government-to-government (G2G) arrangement.

The decision was taken at a meeting chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar. The committee has directed a dedicated negotiation team, led by the Prime Minister’s Adviser on Privatization, to finalize the framework deal in consultation with the ministries of defence, finance, law, and privatisation.

Economic Reform Strategy

According to officials, the move is part of Pakistan’s wider economic revival plan, which seeks to attract foreign partners to modernise state assets, enhance operational efficiency, and reduce financial losses in government-managed enterprises. Similar outsourcing agreements for other major airports are also being considered.

Why Islamabad Airport?

Inaugurated in 2018, Islamabad International Airport has faced challenges related to operational inefficiency and financial sustainability. Authorities believe that the new partnership with the UAE will:

• Introduce international best practices in airport management.

• Improve passenger services and facilities.

• Restore investor confidence in Pakistan’s aviation sector.

Background and Next Steps

The meeting was attended by the Petroleum Minister, Special Assistant to the Prime Minister Tariq Bajwa, federal secretaries, and other senior officials.

Earlier in July 2025, it was reported that the government had opted against an open bidding process. Instead, Pakistan is pursuing direct G2G negotiations with the UAE to finalize the agreement for airport operations.

This marks a significant step in Pakistan’s efforts to restructure and modernize its aviation industry through global collaboration.