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Pakistan Approves UAE Takeover of Islamabad Airport Operations

Deal marks strategic move to boost aviation standards and foreign investment

  • Publish date: Saturday، 30 August 2025 Reading time: two min read
Pakistan Approves UAE Takeover of Islamabad Airport Operations

Pakistan has approved a landmark agreement allowing the United Arab Emirates (UAE) to take over operational control of Islamabad International Airport, in what officials describe as a major step in the country’s push to modernize state assets and attract foreign investment.

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The decision was announced following a meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions, chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar. A special negotiation team, led by Prime Minister’s Adviser on Privatisation Muhammad Ali, will now finalise the terms of the deal with Abu Dhabi.

Officials hailed the move as a “strategic pivot” in Pakistan’s economic reform programme, aimed at improving efficiency in state-owned enterprises, boosting investor confidence, and enhancing infrastructure.

A billion-dollar facility with untapped potential

Islamabad International Airport, inaugurated in 2018 at a cost of over USD 1 billion, is Pakistan’s largest aviation facility, with the capacity to handle 15 million passengers annually, expandable to 25 million. Despite its modern design, the airport has faced operational inefficiencies and financial losses, prompting the government to seek international expertise.

By bringing in the UAE’s operational experience, Pakistan aims to elevate passenger service standards, streamline airport management, and transform the facility into a regional aviation hub.

Deputy PM Dar stressed that national interests would remain safeguarded. “This partnership will help transform Islamabad Airport into a facility that matches global service and operational standards,” he said.

Strengthening Pakistan–UAE economic ties

The agreement is seen as more than just an aviation deal — it also underscores Pakistan’s efforts to strengthen its strategic and economic ties with the UAE, a key investor and source of remittances.

Analysts suggest the successful outsourcing of Islamabad Airport could set a precedent for similar partnerships at Lahore and Karachi airports, further positioning Pakistan as a growing destination for global investors in transport and logistics.

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