The Government of Pakistan is moving forward with a government-to-government (G2G) agreement to outsource Islamabad International Airport to the United Arab Emirates (UAE), according to sources in the Privatization Commission. Rather than using the previously planned open bidding process, the government has opted for direct negotiations under the G2G model.
Key ministries — Finance, Defense, and Aviation — have been tasked with developing a detailed framework for the agreement. This proposal will be presented to the UAE after securing approvals from the federal cabinet and the International Monetary Fund (IMF).
Officials explained that the shift away from open bidding aims to speed up the process and align with the country’s broader economic reform goals. The government hopes this strategic move will attract timely investment and enhance operational efficiency at the airport.
The outsourcing of Islamabad International Airport is part of a wider privatization drive targeting at least seven state-owned enterprises (SOEs) in the current fiscal year. These include Pakistan International Airlines (PIA), three major electric supply companies (IESCO, FESCO, GEPCO), First Women Bank, and the House Building Finance Corporation.
Final decisions will be made after consultations with both local and international stakeholders reviewing the framework.
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