The collapse of a potential UAE partnership has prompted Pakistan to fast-track privatization of its bustling Islamabad International Airport. What began as an outsourcing initiative fizzled when Abu Dhabi failed to designate a management firm, prompting Islamabad to seek private buyers instead.
Diplomatic sources indicate a standoff emerged from the UAE’s indecision, culminating in Pakistan’s pointed request for confirmation. The response: no viable entity forthcoming. This led to the airport’s inclusion in the privatization shortlist, hot on the heels of PIA’s divestment.
Key disagreements included UAE pushes to incorporate Karachi and Lahore airports into a G2G pact, alongside liberalizing flights between the nations—both vetoed by Pakistan. Despite a dedicated trip by top privatization officials to Abu Dhabi, no consensus was reached.
The Privatization Division’s earlier summary to the cabinet had advocated outsourcing the trio of airports, but UAE’s retreat necessitated a strategic overhaul. Broader critiques paint a grim picture of Pakistan’s state-owned enterprises, crippled by governance failures and political overreach.
These entities rack up losses year after year, propped up until debts overwhelm, then offloaded cheaply. Privatization advocates argue it offers a path to revival through private sector discipline and innovation.
As bids are prepared, the move signals Islamabad’s commitment to shedding loss-making assets, with hopes that new owners will elevate standards at the capital’s primary air gateway and contribute to economic stabilization.