The Government of Pakistan is moving ahead with a government-to-government (G2G) agreement with the United Arab Emirates (UAE) for the outsourcing of Islamabad International Airport, according to sources within the Privatization Commission.
Instead of an open bidding process, the authorities have opted for direct negotiations under a G2G model, citing the need for a more strategic and time-efficient approach. This shift comes as part of Pakistan’s broader economic reform program, which includes key privatization targets for the fiscal year.
To develop a detailed framework for the agreement, the Ministry of Finance, Ministry of Defense, and Aviation Division have been tasked with working together. Once finalized and cleared by the federal cabinet and the International Monetary Fund (IMF), the framework will be shared with UAE officials for further discussions.
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Earlier, the airport was expected to be outsourced through an open bidding process. However, the government’s revised plan focuses on speed and strategic partnerships to attract investment and improve efficiency.
Islamabad International Airport is one of at least seven state-owned enterprises (SOEs) the federal government aims to privatize in 2025. Other entities on the list include Pakistan International Airlines (PIA), Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), First Women Bank, and House Building Finance Corporation.