The federal government is preparing to hand over control of Islamabad International Airport to the United Arab Emirates through a government-to-government agreement, opting to bypass the traditional open bidding process. The shift marks a significant change in the country’s privatization strategy, prioritizing speed and strategic alignment over competitive transparency.

Sources familiar with the matter say that a comprehensive framework is currently being developed jointly by the Ministry of Finance, Ministry of Defense, and the Aviation Division. This framework will be shared with UAE authorities once it secures the necessary approvals from the federal cabinet and the International Monetary Fund. The goal is to move quickly, aligning the airport deal with Pakistan’s broader economic reform agenda.

While proponents of the move believe this could lead to improved operational efficiency, infrastructure upgrades, and foreign investment, critics warn that the lack of an open bidding process raises concerns over transparency and long-term national interest. Many believe that such a high-value national asset should not be transferred behind closed doors, especially when public trust in privatization processes remains fragile.

This decision is part of a larger plan by the government to privatize at least seven state-owned enterprises during the current fiscal year. Alongside the airport, entities like Pakistan International Airlines, regional electric supply companies, First Women Bank, and House Building Finance Corporation are also on the list.

If finalized, the deal will give the UAE entity long-term operational control of Islamabad’s main international gateway. As stakeholders review the emerging framework, the spotlight is once again on whether fast-tracked privatization can deliver promised results or if it will further complicate the already sensitive issue of managing national assets.