Pakistan dismisses reports of cancelled UAE deal for Islamabad Airport

Dubai: The Pakistan government has formally included Islamabad International Airport (IIAP) in its active privatisation programme.

The move is part of its ongoing outsourcing process for Karachi’s Jinnah International Airport and Lahore’s Allama Iqbal International Airport, revealed the Ministry of Privatisation.

The new step is part of a broader strategy to outsource operations at the country’s three largest airports through management contracts or long-term commercial concessions, aimed at improving efficiency, upgrading infrastructure, enhancing passenger services and maximising revenue generation.

According to the ministry, the privatisation initiative seeks to attract both domestic and international private-sector investment as part of Pakistan’s wider effort to modernise its aviation sector. Discussions have been held with potential investors from the United Arab Emirates, Turkey, Saudi Arabia and other international stakeholders.

Reports clarified

The Privatisation Commission strongly rejected reports suggesting the cancellation of a proposed agreement for Islamabad International Airport, clarifying that no lease or concession agreement had ever been signed for any of the three airports, including IIAP. Claims that Pakistan had cancelled a lease deal with the UAE were described as misleading and factually incorrect.

Open bidding

In November 2025, amid strong investor interest, the government decided to shift from a government-to-government framework to an open and competitive bidding process for all three airports. Officials said the decision was based purely on economic and procedural considerations and carried no political or diplomatic implications.

New approach

Under the revised approach, all eligible local and foreign investors will be offered a level playing field to participate in the bidding process. The government said the competitive model would ensure transparency, fair competition and optimal outcomes for the national economy, while keeping participation open to investors from friendly countries and beyond.

“This inclusive process is designed to deliver the best value for Pakistan and reinforce long-standing partnerships with international stakeholders,” the ministry said.