Pakistan Approves UAE Takeover of Islamabad Airport Operations
Pakistan has formally approved a landmark agreement allowing the United Arab Emirates (UAE) to take over the operational management of Islamabad International Airport. The move is part of Islamabad’s wider strategy to outsource state-owned assets through direct government-to-government (G2G) partnerships.
Key Highlights of the Decision
- Approved during a meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions, chaired by Deputy PM and Foreign Minister Ishaq Dar.
- A negotiation team led by PM’s Adviser on Privatisation Muhammad Ali, with officials from Defence, Finance, Law, and Privatisation ministries, will finalize terms with Abu Dhabi.
- Described by officials as a “strategic pivot” in Pakistan’s privatisation roadmap to attract foreign capital and reduce financial burdens.
Why Islamabad Airport Was Chosen
Islamabad International Airport is one of Pakistan’s most valuable aviation assets:
| Feature | Details |
|---|---|
| Inaugurated | 2018 |
| Construction Cost | Over USD 1 Billion |
| Passenger Capacity | 15 Million annually (expandable to 25M) |
| Status | Pakistan’s largest airport |
Despite its modern design, the facility has struggled with operational inefficiencies and financial losses, making it a prime candidate for outsourcing.
Strategic Impact
- Modernisation: UAE expertise expected to improve efficiency and service standards.
- Investment boost: Signals Pakistan’s openness to foreign capital in critical infrastructure.
- Economic reform: Reduces the financial drain of underperforming state enterprises.
This deal marks a significant step in Pakistan-UAE bilateral cooperation, reflecting Islamabad’s efforts to stabilize its economy while enhancing aviation infrastructure.
