Pakistan has agreed to transfer operations of Islamabad International Airport to the United Arab Emirates, marking the first government-to-government outsourcing of a major state asset as part of a broader privatization and investment drive.
Deputy Prime Minister and Foreign Minister Ishaq Dar chaired a Cabinet Committee on Inter-Governmental Commercial Transactions meeting Thursday that approved negotiations on a framework deal with Abu Dhabi. A committee led by the prime minister’s advisor on privatization will finalize terms with input from the defense, finance, law and privatization ministries.
The government sees the move as a test case for attracting foreign partners to upgrade infrastructure and bring efficiency to loss-making state enterprises. Officials say outsourcing management of the capital’s airport, inaugurated in 2018 at a cost of over $1 billion, will improve service standards, ensure professional operations and boost investor confidence.
Islamabad is also preparing to extend the model to other major airports as part of reforms aimed at stabilizing the economy, which has long struggled with mounting debt and underperforming state-run companies.
The meeting was attended by the petroleum minister, the prime minister’s advisor on privatization, Special Assistant to the Prime Minister Tariq Bajwa, federal secretaries and senior officials from relevant ministries.
