Pakistan denies reports of cancelled Islamabad International Airport deal with UAE

Pakistan has "strongly" refuted rumours of the UAE cancelling any deal to manage Islamabad International Airport amid outsourcing at three of the country's major airports.

Amid circulating reports, the Privatisation Commission of the South Asian country stated the claim that "Pakistan cancelled any lease agreement with the UAE" was "contrary to the facts and misleading", as no such agreement or lease was ever signed for any of the airports including Islamabad International Airport.

Pakistan's government has been actively considering a range of options for outsourcing operations at three major airports — Islamabad International Airport (IIAP), Karachi's Jinnah International Airport (IAP) and Lahore's Allama Iqbal International Airport (AlIAP).

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In August, the government approved the transfer of management of Islamabad International Airport to the UAE. The committee decided to finalise arrangements with the UAE government through a G2G (government-to-government) model for the transfer of operations of Islamabad International Airport under a framework agreement.

This includes management contracts and long-term commercial concessions. As part of the plan, Islamabad Airport has been included into the active privatization program, along with the ongoing process for airports at Karachi and Lahore.

The primary objectives are to enhance efficiency, improve service delivery, maximise revenue generation, upgrade infrastructure, and attract domestic and international private sector investments.

This strategy has involved dialogue with entities from countries like the UAE, Turkey, Saudi Arabia, as well as other international stakeholders.

The authority further clarified that in November, 2025, due to high level of interest from various investors for participating in these concessions, the government decided to move from G2G mode to an open bidding mode for all three airports.

"In this competitive process, all domestic and foreign investors will have a level playing field to participate in the bidding process. This decision does have any political or diplomatic background, and is based purely on economic and procedural reasons," it stated.

The bidding process will prioritise inclusivity, welcoming participation from all eligible entities, including those from the valued partner nations and beyond, while affording equal opportunities to local and foreign investors.

"This is designed to promote transparency and fair competition, deliver the most advantageous results for Pakistan's economy, and reinforce our enduring relationships with international partners," the statement further added.

Opened in 2018, the capital’s airport experienced many operational and financial difficulties. The takeover by the UAE, which is home to some of the world’s largest airports, will enhance the Islamabad International Airport’s efficiency and operational performance.