Govt Of Pakistan has decided to place Islamabad International Airport on the active privatisation list after the United Arab Emirates withdrew from a proposed government-to-government (G2G) arrangement for outsourcing the airport’s management and operations, according to official sources.

The decision follows repeated delays by the UAE in nominating a designated operating entity for the project. Despite multiple follow-ups from Pakistani authorities, no operator was identified, prompting Islamabad to conclude that the UAE was no longer interested in pursuing the arrangement.

Sources said Pakistan issued a final request seeking confirmation of the nominated entity. In response, the UAE conveyed that it was unable to provide any nomination and did not intend to move forward with the process, effectively bringing the G2G discussions to a close.

The development aligns with the government’s broader privatisation drive, particularly following progress on the privatisation of Pakistan International Airlines. Officials noted that Islamabad Airport will now be evaluated alongside Jinnah International Airport and Allama Iqbal International Airport for potential privatisation or outsourcing.

Previously, negotiations with the UAE were limited exclusively to Islamabad Airport. Pakistan did not agree to expand the draft G2G framework to include Karachi and Lahore airports, nor did it support proposals linked to the privatisation of the Abu Dhabi–Pakistan air route.

To advance talks, a negotiation committee led by the Adviser to the Prime Minister on Privatisation had been constituted, with the Pakistan Airports Authority acting as the local counterpart. Several draft agreements were exchanged, and a Pakistani delegation also visited Abu Dhabi to facilitate progress.

Subsequently, the Privatisation Division submitted a summary to the Cabinet Committee on Privatisation recommending the inclusion of Islamabad, Karachi, and Lahore airports in the active privatisation list. While Karachi and Lahore received initial approval, a final decision on Islamabad was deferred pending the UAE’s response.

Officials said the prolonged uncertainty and failure to nominate an operator ultimately stalled the process, leading the government to formally terminate the G2G arrangement and move Islamabad International Airport into the privatisation pipeline.