Pakistan to Transfer Islamabad Airport Operations to the UAE under a government-to-government (G2G) deal approved by the federal cabinet on Thursday. The agreement, officials say, aims to attract foreign investment and revive the country’s struggling aviation sector.
Cabinet Approves Transfer to UAE
The Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT), chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar, approved the decision. Dar said the move would align airport operations with international standards while protecting Pakistan’s national interests.
A special negotiation committee, led by the Prime Minister’s Adviser on Privatisation Muhammad Ali, will now finalise the details. Members include officials from the defence, finance, law, and privatisation ministries.
UAE Expertise to Improve Efficiency
By outsourcing operations, Pakistan expects the UAE’s experience to bring efficiency, better passenger services, and stronger regional connectivity. Islamabad International Airport, inaugurated in 2018 at a cost of over $1 billion, has struggled with delays, mismanagement, and inadequate facilities.
Officials believe foreign management can transform the airport into a modern regional hub.
Part of Wider Privatisation Plan
The transfer of airport operations is part of a broader strategy to privatise or outsource major state-owned enterprises. These include Pakistan International Airlines (PIA) and power distribution companies, in line with commitments made to the International Monetary Fund (IMF) under its $7 billion bailout programme.
The government has also hinted at similar arrangements for Karachi and Lahore airports.
Aviation Sector Challenges
Pakistan’s aviation industry has faced turbulence in recent years. The 2020 European Union ban on PIA flights, triggered by a pilot licensing scandal, damaged international confidence. Although the ban has since been lifted, trust in the sector remains low.
Authorities hope the Pakistan to Transfer Islamabad Airport Operations to UAE decision will restore credibility, attract international airlines, and boost economic growth.
Strengthening Ties with the UAE
The move also reflects Islamabad’s push to deepen economic ties with the UAE, a key trade partner and one of Pakistan’s largest sources of foreign investment.
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