In a significant shift for Pakistan’s aviation sector, the government has greenlit the privatization of Islamabad International Airport following the United Arab Emirates’ withdrawal from earlier outsourcing talks. The decision comes after months of stalled negotiations, where Abu Dhabi reportedly lost interest in managing the key facility.
Sources familiar with the matter reveal that repeated failures to nominate a specific UAE entity for the airport’s operations created an impasse. Pakistan issued a final ultimatum seeking clarity, only to receive confirmation from the UAE that they could not commit to any designated firm. This paved the way for Islamabad to pivot towards full privatization.
The airport now joins a growing list of state assets earmarked for private hands, including the recently privatized Pakistan International Airlines (PIA). Government officials had previously explored a government-to-government (G2G) framework but rejected UAE demands to extend it to Karachi’s Jinnah International and Lahore’s Allama Iqbal International Airports.
Additional sticking points included UAE proposals for privatizing air links between Abu Dhabi and Pakistan, which were dismissed outright. A high-level Pakistani delegation, led by the Prime Minister’s advisor on privatization, had traveled to Abu Dhabi for discussions, but no agreement materialized.
This move underscores Pakistan’s broader strategy to offload underperforming public enterprises plagued by mismanagement and political interference. Reports highlight how state-owned entities suffer massive losses due to poor governance, often sold at fire-sale prices only after debt burdens become unsustainable.
As privatization efforts accelerate, stakeholders watch closely to see if private operators can revive the capital’s gateway, boosting efficiency and revenue in a sector long dominated by inefficiency.
