The United Arab Emirates (UAE) has ended the deal for operation of the international airport in Pakistan. According to Pakistani newspaper The Express Tribune, Abu Dhabi has decided that it will no longer operate Islamabad’s International Airport. This is being linked to the sudden visit of UAE President Sheikh Mohammed bin Zayed Al Nahyan to India. Nahayan came to India on January 19 for just 2 hours. His visit to India was announced a day earlier on January 18. Pakistan said – There was never any deal with UAE. Pakistan said on Saturday that there was never any deal with UAE for leasing or running Islamabad Airport. The government termed as misleading the media reports which said that Pakistan had canceled the proposed agreement with UAE. Pakistan said that there are preparations to privatize the capital’s Islamabad International Airport. According to the government, it was decided in November 2025 that airports will be handed over to private hands through open and competitive bidding instead of the government-to-government model. The reason for this was said to be the strong interest of investors. Islamabad Airport involved in privatization Government informed that Islamabad International Airport has now been included in the active privatization program under the long-term concession model. It is being privatized on the lines of Karachi and Lahore airports. The Government of Pakistan said that all domestic and foreign investors will get equal opportunity in the open bidding process. Investors from partner countries like UAE can also participate in this. The government says that the purpose of this step is to modernize the aviation sector and promote private investment. Pakistan has sold its government airline. Pakistan has sold its government airline to Pakistan International Airlines (PIA). Last month, PIA was auctioned on 23 December. Pakistan, which is facing economic crisis, had decided to sell 75% stake in PIA. The country’s Arif Habib Group bought PIA for Rs 4320 crore. The government has kept 25% stake with itself. PIA had been running in losses for many years and had huge debts. Last year also the government had tried to sell it, but then only a very low price bid came, due to which the deal was cancelled.
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