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The federal government has approved the inclusion of Islamabad International Airport in the active privatization list after ending plans to outsource its operations to the United Arab Emirates (UAE) under a government-to-government (G2G) framework, according to official sources.
The decision was taken after prolonged delays by the UAE in nominating an operating entity for the proposed arrangement. Despite repeated requests from Pakistan, no confirmation was provided, leading authorities to conclude that the UAE was no longer interested in pursuing the deal.
Sources said Pakistan issued a final request seeking clarity on the nomination. In response, the UAE informed Islamabad that it was unable to identify an entity and did not wish to proceed further with the process. As a result, the government decided to formally close the G2G engagement.
With the outsourcing plan shelved, Islamabad International Airport will now be considered for privatization alongside Jinnah International Airport, Karachi, and Allama Iqbal International Airport, Lahore, in line with the government’s broader privatization agenda following the recent privatization of Pakistan International Airlines (PIA).
Earlier discussions with the UAE were limited to Islamabad Airport only. Pakistani authorities did not agree to proposals seeking the inclusion of Karachi and Lahore airports under the draft G2G framework, nor did they support requests related to the privatization of the Abu Dhabi- Pakistan air link.
A negotiation committee headed by the Adviser to the Prime Minister on Privatization had been constituted to pursue the Islamabad Airport proposal. The Pakistan Airports Authority was designated as the local counterpart, and several draft agreements were exchanged during the process. A Pakistani delegation also visited Abu Dhabi to advance negotiations.
Subsequently, the Privatization Division submitted a summary to the Cabinet Committee on Privatization, recommending the placement of Islamabad, Karachi, and Lahore airports on the active privatization list. While the committee initially approved Karachi and Lahore, it sought a final response from the UAE regarding Islamabad.
Officials said continued delays and the absence of a nominated UAE entity hindered progress, prompting the government to formally end the G2G process and move forward with privatization plans for Islamabad International Airport.
