UAE exits Islamabad airport outsourcing plan, Pakistan moves toward privatisation

The Pakistan government has approved a proposal to place Islamabad International Airport on the active privatisation list after shelving plans to outsource its management and operations to the United Arab Emirates (UAE), which indicated it was no longer interested in the process, The Express Tribune reported, citing official sources. 

The decision follows repeated delays by the UAE in nominating an entity for the proposed government-to-government arrangement. Despite multiple requests from Pakistan, the UAE side did not share the name of a nominated operator, leading authorities to conclude that Abu Dhabi had lost interest.

Sources said Pakistan issued a final call seeking clarity on the nomination. In response, the UAE conveyed it was unable to confirm any entity and did not wish to proceed further. 

The move aligns with the government’s broader privatisation strategy following the recent privatisation of Pakistan International Airlines. Officials said Islamabad Airport will now be considered alongside Jinnah International Airport Karachi and Allama Iqbal International Airport Lahore for privatisation or outsourcing.

Earlier, Pakistan had limited discussions with the UAE to Islamabad Airport only and did not accept requests to include Karachi and Lahore airports under the draft G2G framework. Requests related to privatising the Abu Dhabi–Pakistan air link were also not supported by Islamabad.

A negotiation committee led by the Adviser to the Prime Minister on Privatisation had been formed to pursue the Islamabad Airport proposal. Pakistan Airports Authority was nominated as the local counterpart, and several draft agreements were exchanged. A Pakistani delegation also visited Abu Dhabi to advance talks.

Subsequently, the Privatisation Division submitted a summary to the Cabinet Committee on Privatisation proposing the inclusion of Islamabad, Karachi, and Lahore airports in the active privatisation list. The committee initially approved Karachi and Lahore, while seeking a final response from the UAE on Islamabad.

Officials said continued delays and the absence of a nominated UAE entity impeded progress, prompting the government to close the G2G process and add Islamabad International Airport to the privatisation list.