Pakistan has clarified that no agreement was ever signed for the United Arab Emirates to manage Islamabad International Airport, rejecting media reports that claimed a proposed lease arrangement with Abu Dhabi had been canceled.
In a statement issued on Saturday, the government confirmed that Islamabad airport — along with Lahore and Karachi airports — has instead been placed in the country’s active privatization and outsourcing program, which will now proceed through an open and competitive bidding process.
The clarification came after reports suggested Pakistan had abandoned a government-to-government deal with the UAE due to delays in nominating an operating entity and an apparent loss of interest from Abu Dhabi.
However, the Privatisation Commission said the decision to shift to open bidding was driven by strong interest from multiple local and international investors, and not the collapse of any UAE-specific arrangement.
Reports of Cancelled UAE Deal for Islamabad Airport
It was covered widespread that the government has officially shelved the outsourcing plan for Islamabad International Airport after talks with the United Arab Emirates (UAE) failed to move forward. Now, Islamabad Airport moves to the privatization list.
The decision came after Abu Dhabi repeatedly delayed nominating an entity to manage and operate the airport, signalling a clear lack of interest in continuing the process.
As a result, the government has now decided to place Islamabad Airport on the active privatisation list, following the recent successful privatisation of Pakistan International Airlines (PIA).
Delays from the UAE Trigger Policy Shift
According to official sources, Pakistan repeatedly sought clarity from the UAE regarding the nominated company for Islamabad airport outsourcing. However, despite initial interest, the UAE side failed to share the name of any entity.
After sending a final call letter, Pakistani authorities received confirmation that the UAE could not go further with the outsourcing arrangement. Consequently, policymakers keep on selecting to close the government-to-government (G2G) process and pursue privatisation instead.
Islamabad Airport Joins Privatization Strategy
After the collapse of talks, the government approved a proposal to include Islamabad International Airport in the privatization roadmap. It is drawing confidence from the strong investor response to the PIA deal.
Earlier, the Privatisation Division submitted a summary to the Cabinet Committee on Privatisation (CCoP), proposing the inclusion of Islamabad, Karachi, and Lahore airports in the active privatisation list for outsourcing and long-term management.
While the cabinet body initially approved Karachi and Lahore airports, it directed the concerned ministry to seek a final response from the UAE regarding Islamabad Airport within a week.
Why the G2G Framework Failed
Despite multiple draft agreements, official visits to Abu Dhabi, and continuous engagement led by the Adviser to the Prime Minister on Privatisation, negotiations failed to reach a conclusion. UAE officials argued that commercial and technical governance requirements needed finalisation before naming a managing entity.
However, Pakistani authorities viewed the repeated delays as a major obstacle to reforming airport operations efficiently.
What are the things expected in the future?
As Islamabad Airport now moved to the privatisation list, the government is leaving no stone unturned to
- Attract broader international competition
- Improve service standards
- Enhance operational efficiency—marking a new chapter in Pakistan’s aviation reform agenda