Pakistan approves UAE takeover of Islamabad Airport operations
Similar deals planned for Karachi and Lahore airports
ISLAMABAD/DUBAI – Pakistan has cleared the way for the United Arab Emirates (UAE) to assume operations at Islamabad International Airport after the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) approved the landmark handover.
Thursday’s meeting, chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar, endorsed a government-to-government (G2G) framework with the UAE for the transfer of management. A specialised negotiation committee will now finalise terms, led by the prime minister’s adviser on privatisation and joined by representatives from the ministries of defence, finance, law and privatisation.
Deputy Prime Minister/Foreign Minister, Senator Mohammad Ishaq Dar @MIshaqDar50, today chaired a meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT).
— Office of the Deputy Prime Minister (@DPM_PK) August 28, 2025
The meeting was attended by Minister Petroleum, Advisor on Privatization, SAPM Tariq Bajwa,… pic.twitter.com/PISSbUepFl
Officials said the move is designed to address inefficiencies at Islamabad International Airport, inaugurated in 2018, which has faced persistent financial and operational challenges. By leveraging UAE expertise, Pakistan hopes to improve service standards, restore investor confidence and strengthen regional aviation links.
Built at a cost of over $1 billion (about Dh3.67 billion), Islamabad International Airport was inaugurated in 2018 as Pakistan’s largest and most modern aviation facility. However, despite its scale and design, the airport has struggled with financial and operational inefficiencies, prompting the government to seek foreign expertise to improve standards and efficiency.
UAE’s takeover of Islamabad airport
The CCoIGCT authorised the creation of a negotiation team tasked with working out revenue-sharing, operational responsibilities and regulatory oversight. Senior federal secretaries, the petroleum minister and Special Assistant to the Prime Minister Tariq Bajwa also attended the high-level session.
The airport handover is part of Pakistan’s wider strategy to privatise or outsource major state assets. The plan aligns with reforms tied to the $7 billion IMF bailout package approved in September 2024. Officials confirmed that similar outsourcing arrangements are being considered for Karachi and Lahore airports.
What comes next?
The next stage involves formal negotiations between the designated committee and UAE officials. Key aspects including the duration of the deal and investment commitments are yet to be determined. No public timetable has been announced for the final signing of the framework agreement.