Pakistan has approved a landmark agreement that allows the United Arab Emirates to assume operational control of Islamabad International Airport, a move aimed at enhancing efficiency and attracting foreign investment to the country’s aviation sector.
The decision was confirmed by Deputy Prime Minister and Foreign Minister Ishaq Dar following a meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions. A high-level negotiating team, led by the Prime Minister’s Adviser on Privatization and including officials from the ministries of Defence, Finance, Law, and Privatization, has been tasked with finalizing the agreement with Abu Dhabi.
Islamabad International Airport, inaugurated in 2018 at a cost exceeding USD 1 billion, has the capacity to handle 15 million passengers annually, with potential expansion to 25 million. Despite its modern infrastructure, the facility has faced operational inefficiencies, prompting the government to seek external expertise to address these issues.
The partnership with the UAE is expected to bring global best practices in aviation management, elevate service standards, and strengthen Islamabad’s position as a regional connectivity hub. Officials stated that the outsourcing would safeguard national interests while aligning with Pakistan’s broader economic reform agenda, including commitments under its IMF program.
The agreement also underscores strengthening economic ties between the UAE and Pakistan, which already share strong links in trade, investment, and remittances. If successful, the Islamabad model could pave the way for similar arrangements at other major Pakistani airports, including Karachi and Lahore.
