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The Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) on Thursday 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 made during a meeting chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar. The committee authorized finalizing a framework deal with the UAE, with a dedicated negotiation team led by the prime minister’s adviser on privatization. The team will finalize terms in consultation with the ministries of defence, finance, law, and privatisation.

Officials said the step is part of Pakistan’s broader economic revival strategy, aimed at attracting foreign partners to modernize state assets, improve efficiency, and reduce financial losses at government-run entities. Similar outsourcing arrangements for other major airports are also under review.

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Inaugurated in 2018, Islamabad International Airport has faced challenges including operational inefficiencies and financial constraints. Authorities believe that a UAE partnership under the G2G model will inject global expertise, enhance passenger services, and restore investor confidence in Pakistan’s aviation sector.

The meeting was also attended by the petroleum minister, SAPM Tariq Bajwa, federal secretaries, and senior officials from relevant ministries.

In July 2025, reports indicated that Pakistan had moved away from an open bidding process for outsourcing the airport’s operations, opting instead for direct negotiations with the UAE under the G2G framework.