Govt decides to hand over Islamabad Airport operations to UAE
Move comes as Pakistan’s efforts to attract foreign partners to improve efficiency at loss-making state assets
August 29, 2025
- Cabinet committee approves airport deal under G2G framework.
- Privatisation adviser to lead terms finalisation with ministries.
- Move to attract foreign partners to upgrade Pakistan's infrastructure.
The federal government has decided to hand over the operations of Islamabad International Airport to the United Arab Emirates (UAE), marking a major step in the Centre's plan to bring in foreign partners to manage its key state-run assets.
The decision was made on Thursday during a meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT), chaired by Deputy Prime Minister Ishaq Dar, The News reported on Friday.
Officials confirmed that the airport will be handed over under a government-to-government (G2G) framework agreement.
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, the prime minister’s adviser on privatisation, Special Assistant to the Prime Minister Tariq Bajwa, federal secretaries and senior officials from relevant ministries.
