Islamabad Airport management set for outsourcing to UAE

Islamabad International Airport is encountering operational inefficiencies and financial difficulties since its inception in 2018
Pakistan International Airlines (PIA) plane at Islamabad International Airport, October 3, 2023. — Reuters
Pakistan International Airlines (PIA) plane at Islamabad International Airport, October 3, 2023. — Reuters 

In a bid to turn the loss-making government entities into profitable ones, the government has nodded in agreement to the outsourcing of Islamabad Airport management to the United Arab Emirates (UAE). 

Approved in a meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT), the airport management's transfer to the UAE is taking place under a government-to-government (G2G) arrangement.

The committee agree to bring about a framework deal with the UAE. For this purpose, a dedicated team has also been tasked to finalise the terms and conditions of the agreement, with consultations from the defence, finance, law, and privatisation ministries.

Citing officials from the privatisation ministry, TechJuice reported that this initiative forms part of the government’s ambitions to stabilise the under-performing economy, which is anticipated to attract foreign partners, improve efficiency, and reduce losses at enterprises led by the state.

It was learned that the federal government is also mulling over the outsourcing of other prominent airports in the country.

The Islamabad International Airport has purportedly been encountering operational inefficiencies and financial difficulties since its inception in 2018.

The transfer of the airport to the UAE is viewed by experts as an opportunity to invite globally recognised expertise, enhance passenger services, and restore investor confidence in Pakistan’s aviation sector.

Reports churned out earlier by local media outlets already hinted that the government preferred a direct G2G deal with the UAE government after abandoning an open bidding process.