Pakistan has agreed to transfer management of Islamabad International Airport to the United Arab Emirates (UAE) in a significant government-to-government (G2G) deal. The Cabinet Committee on Inter-Governmental Commercial Transactions, headed by Deputy Prime Minister and Foreign Minister Ishaq Dar, ratified the decision. A team led by the Prime Minister’s Adviser on Privatization, Muhammad Ali, will finalize the agreement’s details with Abu Dhabi.

The move is considered a key part of Pakistan’s privatization and economic reform strategy. The government hopes to attract foreign capital, upgrade facilities, and minimize losses from struggling state-owned enterprises.

Opened in 2018 with a price tag of over USD 1 billion, Islamabad International Airport is Pakistan’s biggest aviation facility. It’s designed for 15 million passengers annually, expandable to 25 million. However, operational challenges and financial shortfalls have led to this outsourcing initiative.

Deputy Prime Minister Ishaq Dar stressed that the agreement would protect national interests while bringing airport functions in line with global aviation norms. The collaboration seeks to enhance service standards, improve passenger movement, and maximize the airport’s role as a regional aviation center.

The agreement is anticipated to strengthen investor trust, demonstrating Islamabad’s dedication to public-private ventures and economic reform. This deal is part of a wider effort to strengthen economic links with the UAE, a major regional investor and source of remittances.

Experts believe the successful outsourcing of Islamabad Airport could set a precedent for similar deals at Lahore and Karachi airports. This could make Pakistan an appealing prospect for international transport and logistics companies.