ISLAMABAD: Pakistan’s cabinet has approved a deal to transfer the operations of Islamabad International Airport to the United Arab Emirates (UAE), the government said on Thursday, in a move aimed at attracting foreign capital and improving the country’s struggling aviation sector.
The agreement, to be concluded under a government-to-government (G2G) model, comes as Pakistan seeks to privatize or outsource management of several state-run enterprises under conditions agreed with the International Monetary Fund (IMF) as part of a $7 billion bailout approved in September last year.
The national flag carrier, Pakistan International Airlines (PIA), and state-owned electricity generation and distribution companies, are already on the government’s privatization list, while authorities have been looking for international partners to modernize airports and improve services.
Officials hope foreign partners will bring operational expertise, enhance passenger experience, and restore confidence in the aviation sector.
“Today [Aug. 28] we decided to finalize arrangements with the UAE government through a G2G framework agreement for the transfer of operations of Islamabad International Airport,” Deputy Prime Minister and Foreign Minister Ishaq Dar said in a statement after chairing a meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions.
