Pakistan has strongly dismissed reports claiming that the United Arab Emirates (UAE) backed out of a supposed deal to manage Islamabad International Airport, calling the rumours “misleading and unfounded.”
In a statement, the country’s Privatisation Commission clarified that no agreement or lease had been signed with the UAE regarding the outsourcing of any airport, including Islamabad International. “The claim that Pakistan cancelled an agreement with the UAE is not based on facts,” the commission said, emphasising that discussions over airport management were still part of an ongoing process.
Pakistan’s government has been working to outsource operations at its three main airports — Islamabad, Karachi’s Jinnah International, and Lahore’s Allama Iqbal International — to enhance efficiency, service quality, and revenue generation. In August 2025, Islamabad had approved the handover of Islamabad International Airport’s management to the UAE under a government-to-government (G2G) arrangement, covering both operational control and long-term commercial concessions.
However, following keen interest from several international investors — including potential partners from the UAE, Turkey, and Saudi Arabia — the government decided in November 2025 to shift from the G2G model to a fully open and competitive bidding process.
According to the Privatisation Commission, the move aims to ensure fairness and transparency by allowing both local and foreign investors to participate equally. “This decision is driven entirely by economic and procedural considerations and has no political or diplomatic motives,” it said.
Officials added that the open bidding process will create a level playing field for all qualified stakeholders, foster healthy competition, and secure the best possible outcome for Pakistan’s aviation sector and broader economy.
Opened in 2018, Islamabad International Airport has struggled with operational inefficiencies and financial losses. The government views the outsourcing initiative as a key step toward modernising airport infrastructure, improving service delivery, and attracting private investment to strengthen the country’s aviation industry.