The federal government of Pakistan has decided to outsource the operations of Islamabad International Airport to the United Arab Emirates (UAE). This decision was finalised during a meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT), chaired by Deputy Prime Minister Ishaq Dar.
The outsourcing will function within a government-to-government (G2G) framework. A negotiation committee, chaired by the Prime Minister’s adviser on privatisation, will finalise the terms. Key ministries, including Defence, Finance, Law, and Privatisation, will contribute their input. The meeting was attended by Petroleum Minister Musadik Malik, Special Assistant Tariq Bajwa, and senior officials.
Pakistan is working to enhance the efficiency of its loss-making state assets. For example, outsourcing Islamabad International Airport is expected to enhance service standards, introduce operational expertise, and increase investor confidence. This aligns with broader privatisation reforms tied to Pakistan’s economic revival plan, which includes outsourcing other major airports, such as Karachi and Lahore.
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Inaugurated in 2018, Islamabad International Airport has faced financial and operational issues. For example, its high maintenance costs and inefficiencies have strained resources, per a 2024 Civil Aviation Authority report. UAE management, known for operating world-class airports such as Dubai International, is expected to address these challenges effectively.
The deal with the UAE supports Pakistan’s goal of attracting foreign investment. According to the Ministry of Commerce, bilateral trade with the UAE reached $8.5 billion in 2024, and this partnership has the potential to further strengthen economic ties. Additionally, improved airport operations may enhance Pakistan’s appeal as a regional hub, benefiting both tourism and trade.
