Islamabad airport operations set to shift to UAE management
Cabinet committee approves framework for transfer, seen as move to boost foreign investment and improve efficiency
Haris Zamir
Business Editor
Experience of almost 33 years where started the journey of financial journalism from Business Recorder in 1992. From 2006 onwards attached with Television Media worked at Sun Tv, Dawn Tv, Geo Tv and Dunya Tv. During the period also worked as a stringer for Bloomberg for seven years and Dow Jones for five years. Also wrote articles for several highly acclaimed periodicals like the Newsline, Pakistan Gulf Economist and Money Matters (The News publications)
Airport Security Force (ASF) personnel stand guard at the international arrivals area at the Islamabad International Airport
Reuters
Pakistan has decided to finalize arrangements with the United Arab Emirates (UAE) for the transfer of operations of Islamabad International Airport.
The decision was made during a meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions, chaired by Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar.
The decision has been termed a significant move aimed at boosting foreign investment and improving infrastructure management, an analyst said.
The agreement will be structured under a government-to-government model and is expected to be formalized through a framework agreement between both countries.
The high-level meeting was attended by key cabinet members including the minister for petroleum, the advisor on privatization, and senior officials from the ministries of defense, finance, law & justice, and privatization.
The meeting decided to form a negotiation committee to oversee the finalization process, led by the PM’s advisor on privatization. The committee includes representatives from several federal ministries, reflecting the strategic importance of the transaction.
The transfer of airport operations to the UAE is expected to improve operational efficiency and service quality at Islamabad International Airport by involving experienced international operators, attract foreign investment, reduce fiscal pressure on the government by bringing in private capital and reducing the state’s operational burden, and support privatization efforts, which are part of broader structural reforms backed by international financial institutions like the IMF.
Given the critical role of aviation in trade, tourism, and business connectivity, the efficient operation of Islamabad’s airport could have multiplier effects on the economy, particularly in terms of job creation and enhanced investor confidence.
Islamabad International Airport, opened in 2018, has faced persistent operational and financial challenges. Officials said the UAE’s management, given its experience running some of the world’s busiest airports, would improve efficiency and enhance passenger services.
The airport is the country’s largest aviation facility. With an annual passenger handling capacity of 15 million and designed for future expansion to 25 million, it represents a critical asset in Pakistan’s connectivity and trade ecosystem.
The move is part of Pakistan’s broader efforts to attract investment from Gulf partners while addressing fiscal constraints and infrastructure bottlenecks.
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