Cabinet approves handing over Islamabad
Airport operations to UAE
Pakistan will transfer operations of
Islamabad International Airport to the United Arab Emirates under a
government-to-government (G2G) agreement, approved by the federal cabinet on
Thursday. Officials say the move aims to attract foreign investment and
rejuvenate the country’s struggling aviation sector.
Cabinet approval and oversight
The Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT),
chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar, greenlit the
transfer. Dar stated the initiative will modernize airport operations in line
with international standards while safeguarding Pakistan’s national interests.
A special negotiation committee, led
by the Prime Minister’s Adviser on Privatisation Muhammad Ali and including
representatives from the defence, finance, law, and privatisation ministries,
will finalize the agreement details.
Read More Govt.
plans direct deal with UAE to outsource Islamabad Airport
Leveraging UAE expertise
By outsourcing operations, Pakistan expects to benefit from the UAE’s
experience in airport management, improving efficiency, passenger services, and
regional connectivity. Opened in 2018 at a cost of over $1 billion, Islamabad
International Airport has faced delays, mismanagement, and limited facilities.
Officials hope foreign management will transform it into a modern regional hub.
Part of broader privatisation efforts
This transfer aligns with Pakistan’s wider strategy to privatize or outsource
major state-owned enterprises, including Pakistan International Airlines (PIA)
and power distribution companies, as part of commitments under the $7 billion
IMF bailout program. Similar arrangements may be considered for Karachi and
Lahore airports.
Addressing aviation challenges
Pakistan’s aviation sector has faced turbulence, including a 2020 EU ban on PIA
flights due to a pilot licensing scandal, which dented international
confidence. While the ban has been lifted, restoring trust remains a priority.
Authorities believe the airport transfer will boost credibility, attract
international carriers, and stimulate economic growth.
Read More Islamabad
Airport earns Rs136 million from narrow-body aircraft facility
Strengthening UAE-Pakistan ties
The decision also reflects Islamabad’s efforts to deepen economic relations
with the UAE, one of Pakistan’s largest trade partners and foreign investment
sources.
Source: Daily CPEC