UAE to take over operations at Pakistan’s Islamabad In’t Airport?

UAE to manage Islamabad Int’l Airport? Pakistan’s federal government has greenlit a decision to transfer operations of Islamabad International Airport to the UAE under a government-to-government model, state news agency Associated Press of Pakistan (APP) reports. The move to shake up management comes in a bid to foster foreign investment and enhance infrastructure, Pakistani media outlet Dunya News reports. The investment ticket and timeline for the transfer were not disclosed.

What’s next? A negotiations committee was formed to iron out the details of the transfer agreement — set to be headed by the Pakistani PM’s adviser on privatization, Muhammad Ali.

The rationale: The agreement comes in parallel with Pakistan’s intention to privatize or outsource management for a variety of state-run projects — a condition of the USD 7 bn bailout reform agenda set by the International Monetary Fund last September.

REMEMBER- Pakistan was looking to sell a 51-100% stake in its flagship carrier Pakistan International Airlines last year, Reuters reported at the time. The airline has reportedly only attracted one bid for a 60% stake at USD 36 mn. Four other prospective players have expressed their interest in investing in the airline, according to a statement.

About Islamabad Int’l: The airport, launched in 2018, cost just over USD 1 bn. It boasts two runways — each 3.6 meters long — 15 remote bays (and three for air cargo), as well as facilities to accommodate two Airbus A380s, according to its website.