Pakistan Denies Claims of Cancelled Islamabad Airport Deal With UAE

Pakistan has firmly denied reports claiming that the UAE has cancelled a deal to manage Islamabad International Airport, calling the information inaccurate and misleading amid ongoing plans to outsource operations at three of the country’s major airports.

In a statement, Pakistan’s Privatisation Commission said claims that “Pakistan cancelled any lease agreement with the UAE” were “contrary to the facts and misleading,” stressing that no formal lease or management agreement had ever been signed for Islamabad International Airport or any other airport.

The clarification comes as the government continues to explore multiple outsourcing and privatisation options for Islamabad International Airport (IIAP), Karachi’s Jinnah International Airport (JIAP), and Lahore’s Allama Iqbal International Airport (AIIAP).

UAE talks and G2G framework

In August, the federal government approved a proposal to transfer management of Islamabad International Airport to the UAE under a government-to-government (G2G) framework. The plan included potential management contracts and long-term commercial concessions aimed at improving airport operations.

Islamabad International Airport was also added to Pakistan’s active privatisation programme, alongside Karachi and Lahore airports. Authorities said the strategy is designed to enhance operational efficiency, improve passenger services, boost revenue generation, modernise infrastructure, and attract domestic and foreign investment.

Discussions have involved potential partners from the UAE, Saudi Arabia, Turkey, and other international stakeholders as part of a broader effort to upgrade Pakistan’s aviation sector.

Shift to open bidding model

The Privatisation Commission further revealed that in November 2025, the government decided to move away from the G2G model and adopt an open competitive bidding process for all three airports due to strong investor interest.

“In this competitive process, all domestic and foreign investors will have a level playing field to participate in the bidding process. This decision does have any political or diplomatic background, and is based purely on economic and procedural reasons,” the authority said.

Officials added that the open bidding framework is designed to ensure transparency and fair competition while delivering maximum economic value.

“This is designed to promote transparency and fair competition, deliver the most advantageous results for Pakistan's economy, and reinforce our enduring relationships with international partners,” the statement added.

Islamabad Airport performance and future plans

Opened in 2018, Islamabad International Airport has faced operational and financial challenges in recent years. Authorities believe that involving experienced international airport operators — including firms from the UAE, which manages some of the world’s busiest aviation hubs — could significantly improve efficiency and service standards.

The government is expected to release further details on the bidding timeline and qualification criteria in the coming months as Pakistan moves forward with one of its largest aviation sector reform initiatives.