The Pakistan government has decided to proceed with the privatisation of Islamabad International Airport after a plan to outsource its management and operations to the United Arab Emirates (UAE) was abandoned. The UAE’s lack of interest in the process led to delays and a standstill between the two countries, as reported by The Express Tribune. Pakistani authorities requested a clear response from the UAE regarding the outsourcing, but the UAE did not confirm any nominated entity.
The Islamabad International Airport has now been included in the list of institutions to be privatised by the government. Previously, Pakistan had privatised Pakistan International Airlines (PIA). The UAE’s proposal to include Jinnah International Airport (JIAP) in Karachi and Allama Iqbal International Airport (AIIAP) in Lahore in the government-to-government (G2G) framework agreement was not accepted by Islamabad, according to the report. Additionally, Abu Dhabi’s request for the privatisation of the air link between Abu Dhabi and Pakistan was also disregarded.
A delegation, led by the Adviser to the Prime Minister on Privatisation and senior officials from relevant ministries, visited Abu Dhabi to discuss and finalize the draft framework agreement. The Privatisation Division had previously recommended including Islamabad, Karachi, and Lahore airports in the active privatisation list for outsourcing. Reports indicate that poor governance and mismanagement, exacerbated by political interference, have led to significant losses in Pakistan’s state-owned enterprises, prompting their sale at low prices.
