Pakistan moves to finalize airport operations deal with UAE
Islamabad aims to attract foreign investment and expertise to revitalize aviation sector and boost infrastructure performance
ISLAMABAD, Pakistan (MNTV) — Pakistan’s federal cabinet has approved steps to finalize an agreement with the United Arab Emirates (UAE) for transferring the operational management of Islamabad International Airport, Deputy Prime Minister and Foreign Minister Ishaq Dar said.
The deal, to be executed under a government-to-government (G2G) framework, is part of Islamabad’s broader plan to attract foreign investment and improve efficiency in the country’s struggling aviation industry.
The initiative also aligns with conditions set by the International Monetary Fund (IMF) under a $7 billion bailout secured in 2024.
“The cabinet committee has decided to finalize arrangements with the UAE government through a G2G framework for the transfer of operations of Islamabad International Airport,” Dar said following a meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions.
According to the government statement, a special negotiation committee has been formed to finalize the terms of the deal. The committee will be led by the prime minister’s adviser on privatization and include representatives from the ministries of defense, finance, law and justice, and privatization.
Officials said the agreement is expected to bring in professional expertise, improve passenger facilities, and enhance service standards, helping restore public confidence in the aviation sector.
Islamabad International Airport, inaugurated in 2018 at a cost exceeding $1 billion, was built to replace the old Benazir Bhutto International Airport but has faced repeated criticism over construction delays, technical issues, and inadequate facilities.
The handover marks part of Pakistan’s wider privatization drive, which also includes Pakistan International Airlines (PIA) and several state-run power companies.
Earlier this year, authorities indicated plans to explore management contracts for airports in Karachi and Lahore, though final decisions are pending.
Pakistan’s aviation sector has faced persistent challenges since the 2020 European Union flight ban imposed on PIA following a pilot licensing scandal. Although the ban has since been lifted, the Civil Aviation Authority continues to grapple with safety and financial difficulties.
Analysts say the UAE partnership could signal renewed investor confidence in Pakistan’s infrastructure, potentially opening the door for further collaborations in transport and logistics modernization.
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